Mining giant Glencore have sold off an Australian gold and copper mine for R11bn in order to focus on the transition to green metals. Strangely, Glencore bet big on a thermal coal mine in Colombia in the latter end of last year. They’ve been under pressure from activists groups regarding environmental sustainability concerns, so this could be the first sign post that management is looking to accelerate the rate of change into green metals. – Justin Rowe-Roberts
Glencore closes sale of Ernest Henry Mine
Glencore media statement:
Glencore and Evolution Mining have today closed the sale and purchase of Glencore’s 100% interest in Ernest Henry Mining, the owner of the Ernest Henry Mining (EHM) copper-gold mine in Queensland, Australia.
Glencore has received A$800m and will receive a further A$200m in 12 months time.
In addition, by reason of Evolution’s acquisition of Ernest Henry, from today, all agreements implementing the economic joint ventures between Glencore and Evolution entered into on 23 August, 2016 have ended and Glencore has no further obligation to deliver any gold, copper concentrate or other metals under these agreements from 1 January 2022. Evolution also assumes all rehabilitation obligations and liabilities and will replace Glencore’s rehabilitation bonds.
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.
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