Evolution Mining, a prominent Australian gold miner, has recently made a significant move to diversify its portfolio by acquiring an 80% stake in the Northparkes copper-gold mine located in New South Wales. This strategic acquisition aims to increase Evolution Mining’s exposure to copper and expand its range of high-value assets. The deal, valued at $US399 million ($603 million), was funded through a recent institutional placement of $525 million and a $200 million debt facility.

The Northparkes mine, renowned for its innovative mining techniques, comprises an underground block cave mine, a sub-level cave, and an ore processing plant that specialises in producing copper concentrate for export. Notably, the mine made history in 1997 by becoming the first in Australia to adopt the block caving method, which involves allowing the orebody to collapse naturally under its own weight instead of relying on explosives.

In 2021, Northparkes achieved impressive production figures, extracting a total of 6.77 million tonnes of ore. The mine demonstrated a commendable copper recovery rate of 82.8% and a gold recovery rate of 69.1%. Building upon this success, Evolution Mining has high expectations for the future performance of Northparkes. The company anticipates that the mine will produce approximately 19,000 ounces of gold and 12,500 tonnes of copper in the first half of 2024.

Lawrie Conway, the Managing Director and CEO of Evolution Mining, expressed his excitement about the acquisition and highlighted the company’s dedication to developing a portfolio of long-life, high-margin assets. Conway stated, “This is another important step in our strategy of building a portfolio of long-life, high-margin assets and delivers us two long-life assets in central west NSW. We warmly welcome our new colleagues at Northparkes that will be joining Evolution today, and now turn our attention to delivering value for all stakeholders over the long term from the high-quality Northparkes operation.”

With the addition of the Northparkes mine to its portfolio, Evolution Mining aims to enhance its revenue stream by increasing the contribution of copper. The company forecasts that copper will account for up to 30% of its revenue in the 2023-24 financial year. It is worth noting that Sumitomo, a Japanese company, holds the remaining 20% interest in the Northparkes mine, establishing a valuable partnership for the future.

As Evolution Mining takes control of the majority stake in the Northparkes copper-gold mine, the company is poised to not only strengthen its position in the mining industry but also bolster its commitment to sustainability and responsible resource extraction. The acquisition marks a significant milestone in Evolution Mining’s journey towards establishing itself as a leader in the production of precious metals, particularly gold and copper.