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Evolution acquires large Northparkes stake

January 24, 2024

Evolution Mining has entered into a binding agreement to acquire China Molybdenum Co’s (CMOC) 80 per cent stake in the Northparkes copper-gold mine.


The Northparkes operation is located 27km north-west of Parkes in the central west region of New South Wales, Australia. It has been in operation since 1994 and made history as the first mine to use the block cave mining method in Australia.


Evolution acquired 80 per cent of the project to diversify its portfolio and to increase its exposure to copper, which is expected to increase to about 30 per cent to total revenue in the 2023–24 financial year.


The Australian Financial Review reported that Metals Acquisition Corp was among the other bidders for the mine.


“The acquisition of Northparkes represents a unique opportunity to add another quality asset to our portfolio, strengthening our positioning as a business that prospers through the cycle,” Evolution Mining executive chair Jake Klein said.


“Northparkes is a day-one cashflow producing asset with (an approximate) 30-year mine life, considerable upside and a well-established team that has a great track record and technical experience at the operation.”


Evolution will acquire Northparkes for up to $US475 million ($718 million), which comprises $US400 million ($605 million) in upfront cash consideration and up to $US75 million ($113 million) in contingent consideration. Evolution will also acquire all the shares in CMOC Australian subsidiary, CMOC Mining.


Sumitomo entities, Sumitomo Metal Mining and Sumitomo Corporation, will retain their 20 per cent stake.


CMOC decided to divest its 80 per cent stake in the project to pursue other strategic initiatives more aligned to its objectives.


“Ultimately, this is a mutually beneficial outcome for both parties and an opportunity for Evolution to continue delivering on the successful track record of the operation,” Klein said.


The transaction will be funded by a fully underwritten institutional placement worth $525 million, and a new $200 million five-year term debt facility.



The deal is expected to be completed before the end of the year.



Source: https://www.australianmining.com.au/evolution-acquires-large-northparkes-stake/

Queensland breaks ground on CopperString

July 9, 2024
The Queensland Government has broken ground on the first construction works of the $5 billion CopperString project. Work commenced yesterday on the CopperString projects’ first and largest workforce accommodation site. The site will house those charged with building the project’s 840km high-voltage transmission line that will connect Mount Isa to the ‘SuperGrid’ for the first time. The workforce accommodation will house up to 550 construction workers at its peak. These workers will construct a nearby substation and progress early stages of the transmission line development heading west from Hughenden out to Mount Isa. Supercharging the state’s north-west aims to unlock Queensland’s $500 billion north-west minerals province. It’s expected CopperString will be complete in 2029, weather and construction conditions permitting. Queensland Premier Stephen Miles said CopperString is the biggest ever expansion to the state’s publicly owned energy system. “Queenslanders deserve cheaper, cleaner, more reliable energy – to power their homes, our schools, hospitals, shopping centres and more,” Miles said . “CopperString will be the catalyst for transforming Queensland’s north and north-west – opening up mining opportunities, creating more jobs and unlocking critical minerals which will be essential in developing renewable technologies. “This is the start of a long and exciting future for the region and our state.” Commencing later this month, project owner, Queensland Powerlink, will be offering free sessions for businesses along the CopperString corridor to build their capabilities. The program includes five workshops and one-on-one assistance to help businesses build confidence to bid on major projects and supply chain work in the region. “All of North Queensland understands the immense opportunities that CopperString presents for local jobs both directly and indirectly which is why this is such a momentous day,” Resources and Critical Minerals Minister Scott Stewart said.  “Critical minerals are the next big boom for the resources industry and the feedback I’ve had from companies is that this project is key to unlocking those opportunities.” Source: https://www.australianmining.com.au/queensland-breaks-ground-on-copperstring/

Showcasing the best in underground mining

July 8, 2024
Underground mines are busy places, and it’s vital companies are on top of their processes to enable an efficient and safe underground operation. Whether it’s having the best equipment to drive higher production, maximise return on investment, minimise waste or keep workers out of harm’s way, mining companies benefit from understanding and investing in the right underground technologies. Source: https://www.australianmining.com.au/showcasing-the-best-in-underground-mining/

BHP goes green at ‘world’s largest’ copper mine

July 8, 2024
BHP has started environmental processing to have the transport at its Escondida copper mine in Chile transitioned to an electric trolley system. The Big Australian will invest around $US250 million ($371.6 million) in the project at Escondida, which it owns in a joint venture with Rio Tinto. The funds will go towards installing key infrastructure to electrically assist the movement of extraction trucks in areas where the highest fuel consumption currently takes place. BHP has submitted an environmental impact statement to the Environmental Impact Assessment System in Chile. “The electric trolley system is one of the initiatives with which we seek to move towards a safer and more sustainable way of operating hand in hand with technology,” BHP Escondida president Alejandro Tapia said . “This project will allow us to reduce the fuel consumption of our extraction trucks and thus advance our goal of net-zero operational greenhouse gas emissions by 2050.” The project includes the construction of a new electrical substation and transmission lines both inside and around the Escondida Norte pit. These facilities will electrically assist the movement of trucks inside the mine in the areas where they go up loaded with ore and, consequently, consume more fuel. With this new technology, instead of using diesel, they will be propelled by electrical power, reducing greenhouse gas emissions and improving productivity associated with truck performance given the higher travel speed. Once construction kicks off up to 160 jobs are expected to be created. The trolley project is in addition to other technological transformation initiatives that the company maintains in different stages of study and execution, including the progressive incorporation of autonomy in its mining equipment.  To date, Escondida has six autonomous trucks in full operation and by 2025 it expects to have the largest fleet of autonomous equipment in South America. Source: https://www.australianmining.com.au/bhp-goes-green-at-worlds-largest-copper-mine/
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