Evolution Mining has reached an agreement to acquire the Ernest Henry Mining (EHM) copper-gold mine in Queensland, Australia, from Glencore in a $729.60m (A$1bn) deal.

At closing, Evolution will pay $582m (A$800m) to Glencore. A further A$200m will be paid 12 months after completion.

In 2016, Australia-based Evolution purchased rights to 100% of the gold and 30% of the copper and silver production at the Ernest Henry mine.

With the latest deal, which is due to complete in January 2022, Evolution will assume full ownership and operational control of the copper-gold mine.

Evolution also signed an offtake agreement with Glencore, whereby the latter will offtake 100% of the copper concentrate production at the mine.

The two firms will also sign a separate ore tolling agreement.

Glencore CEO Gary Nagle said: “Evolution has been a strong partner in the Ernest Henry mine for five years. They share our way of working and commitment to operating responsibly across all aspects of the business.”

Production from the project will continue to be treated at Glencore’s Mt Isa smelter and Townsville refinery.

Evolution Mining executive chairman Jake Klein said: “We have long coveted to own Ernest Henry. It is a world-class asset, in Australia, and one which we know extremely well due to our successful investment in the asset in 2016 and we are proud that it will once again be 100%-Australian owned.

“The acquisition is consistent with our strategy, materially improves the quality of our portfolio, and delivers both strong cash flow and mine life extension opportunities.”