LONDON-LISTED miner Glencore agreed to sell its Ernest Henry Mining copper-gold mine in Queensland to Australia-based Evolution Mining for AU$1bn (£539m), the companies said yesterday.

The acquisition will double Evolution Mining's annual copper production from its earlier forecast to between 34 kilotonne and 38 kilotonne, driving all-in sustaining cost (ASIC) lower to about AU$90 to AU$100 per ounce.

The deal, expected to close in January 2022, also includes an offtake agreement sealing the supply of 100 per cent of the copper produced at the mine to Glencore, the companies said in a separate announcement.

Evolution will make an upfront payment of AU$800m to the diversified miner and pay the remaining amount after a year of deal completion.

The company plans to fund the deal through available cash and a new share issuance of $200m.

The deal will see Evolution fully own and operate the Ernest Henry Mine in which it held a stake since November 2016 via a joint venture structure with Glencore.

Glencore hopes to increase its focus on assets in Africa and South America, that are lower-cost and longer-life.

Reuters

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