Austral Resources Australia is continuing its empire-building ambitions by inking a deal to acquire Glencore’s Lady Loretta mining lease and associated exploration tenements.

The company said the acquisition would allow it to extract additional copper ore from its existing Lady Annie mine, which adjoins Glencore’s Lady Loretta mining lease boundary.

News it has executed a non-binding memorandum of understanding over the assets comes hot on the heels of the group’s acquisition of the Rocklands copper mine and processing facility.

The company said this directly supported its North-West Queensland regional copper consolidation strategy.

Related: Austral to acquire Rocklands copper operation

“Lady Loretta, together with our own Mount Kelly processing plant and recently acquired Rocklands project and processing plant from Copper Resources Australia Limited reveal our ambition to consolidate sensible parts of the Mount Isa and Cloncurry copper region,” Austral chairman David Newling said.

“We are of the belief that many of the regional assets would strongly profit from the benefits that consolidation can bring, such as blended mining and processing strategies, along with the reduced cost profile that a larger organisation can bring.”

Austral said it would release further details of the Lady Loretta transaction once it had agreed and executed final binding documentation.

Lady Loretta underground zinc operations would continue to operate until the mine’s original planned closure date of December 2025, it said.

Austral expects to assume responsibility for the ongoing mining operations at Lady Loretta, as well as the progressive rehabilitation of the mine, from completion of the transaction.

Glencore said it would work with Austral and others to explore options to utilise some of the
Lady Loretta infrastructure to support other regional developments.

Glencore Metals Australia interim chief operating officer Troy Wilson said the agreement with Austral highlighted the company’s commitment to the advancement of mineral resources in North-West Queensland.

“We are pleased to continue playing a pivotal role in facilitating the development of new copper resources in North-West Queensland and supporting further local economic development across the region,” Mr Wilson said.

“Glencore was very mindful of how the Lady Loretta lease could be used to assist Austral in recovering additional copper mineral resources and was happy to work together to reach an agreement.”

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