Mining giant Glencore has approved the sale and purchase of its Ernest Henry copper-gold mine in north west Queensland for $1 billion to Evolution Mining.
Glencore will receive $800 million on the closing transaction for the mine 38km north east of Cloncurry, and a further $200 million 12 months after the deal is closed.
In 2016, Evolution announced a 100 per cent stake in the mine's gold production and a 30 per cent claim in silver and copper in a joint venture structure at the mine.
The acquisition means Evolution will receive 100% ownership and operatorship of the asset, while Glencore will continue to treat Ernest Henry product at its Mount Isa smelter.
Evolution Mining executive chairman, Jake Klein says he's proud the asset will be 100 per cent 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," he said.
Kennedy MP, Bob Katter said he's also buoyed by the switch as it won't negatively impact the copper smelter in Mount Isa.
"We have received assurances that Glencore will offtake 100 percent of the copper concentrate and it will be processed, as normal, by Glencore in its Mount Isa smelter and Townsville refinery," he said.
"It is heartening to hear that an Australian company has bought this asset and has taken steps to ensure that the sale would not impact the employment of those involved in the processing of the ore.
"It would be disastrous to lose the Mount Isa smelter. The loss could also force the fertiliser plant to close and cost the local economy over $200 million."