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Highlights
- Queensland supports a groundbreaking hydro project.
- Evolution Mining moves toward a significant energy transformation.
- Potential $190 million in total project funding.
The Queensland government is taking a significant step forward in renewable energy projects by supporting Evolution Mining's (ASX:EVN) Mount Rawdon site's transformation into a pumped hydro energy storage system. This initiative, conducted in partnership with government-owned CleanCo Queensland, marks a pivotal move towards sustainable energy solutions in the region.
Under the newly signed agreement, CleanCo will allocate $30 million to further assess the feasibility of the project. This funding is critical as it will help determine the project's viability by the set deadline of 30 September. The initial phase of the project underscores the commitment to transitioning towards green energy alternatives.
Additionally, CleanCo retains the option to take over the project from Evolution Mining and its joint venture partner ICA Partners. An upfront payment of $50 million could be made to acquire the project, with the possibility of an additional $100 million in deferred payments pending a final investment decision by 30 June 2028. Furthermore, should the project proceed, Evolution Mining would sell the land comprising the mine site to CleanCo for $90 million.
The potential acquisition and further investment reflect the substantial economic and environmental benefits anticipated from this project. The Mount Rawdon hydro project is noted for being one of Australia’s most advanced and cost-efficient pumped hydro ventures. This project not only promises to deliver low-cost green power but also aims to provide long-term employment opportunities in Queensland, boosting the local economy and supporting community development.
Evolution Mining has been at the helm of the Mount Rawdon gold mine for over a decade, and the shift towards renewable energy represents a significant pivot in its operational focus. The company’s executive chair, Jake Klein, expressed enthusiasm for the government's involvement, highlighting the project's potential to supply affordable green energy and create jobs for decades.
The stock market has responded positively to this news, with Evolution Mining’s shares climbing 4.4% to $6.72 at 2:40 pm AEST, continuing a strong upward trend that has seen gains exceeding 70% over the past year.
The Queensland government's strategic investment in the Mount Rawdon hydro project not only underscores its commitment to sustainable development but also positions the state as a leader in the adoption of renewable energy technologies. This project is a cornerstone in Queensland's strategy to enhance its energy infrastructure, emphasizing environmental sustainability and economic growth.
