Wrap Text
GLN - Evolution Mining to acquire Ernest Henry Mining from Glencore
GLENCORE PLC
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
ISIN: JE00B4T3BW64
LEI: 2138002658CPO9NBH955
Baar, Switzerland / Sydney, Australia
17 November 2021
Evolution Mining to acquire
Ernest Henry Mining from Glencore
Glencore and Evolution Mining Limited (Evolution) have entered into a binding agreement for the
sale and purchase of Glencore’s 100% interest in Ernest Henry Mining Pty Ltd, the owner of the
Ernest Henry Mining (EHM) copper-gold mine in Queensland, Australia.
Glencore will receive A$1 billion, comprising A$800 million on the closing of the transaction and a
further A$200 million payable 12 months after the transaction closes.
Evolution will assume full ownership and operational control of the copper-gold mine and will enter
into a copper concentrate offtake agreement and separate ore tolling agreement with Glencore.
Evolution, a local Australian company, has worked in partnership with Glencore for the past five
years at EHM and has emerged as a globally relevant low-cost gold producer with a strong growth
profile.
Jake Klein, Evolution Mining, Executive Chairman, commented:
“We have long coveted to own Ernest Henry. It is a world class asset, in Australia, and one which we
know extremely well due to our successful investment in the asset in 2016 and we are proud that it
will once again be 100% Australian owned. The acquisition is consistent with our strategy, materially
improves the quality of our portfolio and delivers both strong cashflow and mine life extension
opportunities.
The site management team have an outstanding track record of operational delivery and we are
delighted they will be joining Evolution and look forward to working with them to make this an even
better operation.
We are also pleased to be continuing our strong relationship with Glencore and that the product will
continue to be treated in the local region at its Mt Isa smelter and Townsville refinery.”
Gary Nagle, CEO, Glencore, commented:
“Evolution has been a strong partner in the Ernest Henry mine for five years. They share our way of
working and commitment to operating responsibly across all aspects of the business.”
Glencore’s commitment to north-west Queensland will continue with the Mount Isa Mines copper
and zinc complex, copper smelter and Townsville copper refinery. Glencore will also increase its
focus on lower-cost, long-life copper assets in its global portfolio like those in Africa and South
America.
Glencore will offtake 100% of the copper concentrate produced at EHM. Glencore will continue to be
among Australia’s leading producers and exporters of the green metals that underpin the global
transition to a low-carbon future.
The transaction is expected to close in early January 2022.
For further information, please contact:
Investors
Martin Fewings t: +41 41 709 28 80 m: +41 79 737 56 42 martin.fewings@glencore.com
Media
Charles Watenphul t: +41 41 709 24 62 m: +41 79 904 33 20 charles.watenphul@glencore.com
Francis De Rosa m: +61 417 074 751 francis.de.rosa@glencore.com
Agata Graham m: +61 478 304 345 agata.graham@glencore.com.au
Evolution Mining investor and media contacts:
Investor Enquiries Media Contact
Martin Cummings Michael Vaughan
General Manager Investor Relations Media Relations
Evolution Mining Limited Fivemark Partners
martin.cummings@evolutionmining.com michael.vaughan@fivemark.com.au
Tel: +61 2 9696 2900 Tel: +61 422 602 720
www.glencore.com / www.glencore.com.au
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
About Evolution
Evolution Mining is a leading, globally relevant gold miner. Post completion of this transaction and the
divestment of Mt Carlton announced on 5 October 2021, Evolution will operate five wholly-owned mines –
Cowal in New South Wales, Mungari in Western Australia, Mt Rawdon and Ernest Henry in Queensland,
and Red Lake in Ontario, Canada. Financial year 2022 production guidance is 670,000 – 725,000 ounces of
gold at a sector leading All-in Sustaining Cost of A$1,135 - A$1,195 per ounce.
For more information, visit www.evolutionmining.com.au
About Glencore
Glencore is one of the world’s largest global diversified natural resource companies and a major producer
and marketer of more than 60 responsibly-sourced commodities that advance everyday life. The Group's
operations comprise around 150 mining and metallurgical sites and oil production assets.
With a strong footprint in over 35 countries in both established and emerging regions for natural
resources, Glencore's industrial activities are supported by a global network of more than 30 marketing
offices. Glencore's customers are industrial consumers, such as those in the automotive, steel, power
generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services
to producers and consumers of commodities. Glencore's companies employ around 135,000 people,
including contractors.
Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative. Our ambition is to be a net zero total emissions company by 2050.
About Glencore Australia
In Australia, Glencore produces coal, copper, cobalt, nickel, zinc, lead, silver and gold from 26 mining
operations. We also operate metals processing assets in Queensland, New South Wales, Western Australia
and the Northern Territory, including metals smelters, concentrators and refineries.
We are among Australia’s largest producers and marketers of natural resources, connecting Australian
resources with industrial customers around the world. Through our diverse portfolio, we responsibly supply
the resources that advance everyday life.
We employ approximately 17,700 people in Australia (including c.600 at EHM) and in 2020 contributed over
$13.8 billion to the regional, state and national economies. This included spend of $9.5 billion with 7,890
businesses across the country, as well as $2.1 billion in government tax and royalty payments.
We are committed to providing a safe, inclusive and respectful workplace for our people, to respecting the
environment, to engaging openly and constructively with the Traditional Owners on whose lands we
operate and to bringing value to local communities.
Glencore recognises our responsibility to contribute to the global effort to achieve the goals of the Paris
Agreement. Our ambition is to be a net zero total emissions company by 2050. In August 2021 we increased
our medium-term emission reduction target to a 50% reduction by 2035 and introduced a new short-term
target of a 15% reduction by 2026.
www.facebook.com/GlencoreAus
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www.linkedin.com/company/8518
www.youtube.com/glencorevideos
Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this
document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to
Glencore plc and its subsidiaries in general. These collective expressions are used for ease of reference only and do not
imply any other relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer
collectively to members of the Group or to those who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or companies.
Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited
Date: 17-11-2021 09:00:00
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