Evolution Mining Limited (ASX: EVN) is a leading Australian gold miner with a portfolio of low-cost, long-life assets across Australia and Canada. The company operates key sites such as Cowal in New South Wales, Mungari in Western Australia, and Red Lake in Ontario, Canada. Evolution is committed to operational efficiency, strong safety performance, and disciplined capital management, consistently delivering stable gold production and maintaining a focus on sustainable resource development and long-term value creation for shareholders. With a strong balance sheet and consistent reinvestment in exploration, Evolution continues to strengthen its position as a reliable gold producer in the global market.
Evolution Mining Taps Clean Energy Future with Queensland Government Backing
Evolution Mining has taken a bold step toward renewable energy development through a landmark agreement with the Queensland Government. This move not only advances the Mt Rawdon Pumped Hydro Project but also aligns the miner with broader national clean energy ambitions, positioning Evolution as a strategic player in Australia’s energy transformation.
Under the deal, government-owned CleanCo Queensland will inject an initial AU$30 million into feasibility work, with the potential for further investment totalling AU$150 million. This announcement sent Evolution Mining’s shares climbing over 4% to AU$6.72, contributing to a remarkable 70% stock increase over the past year.
The Mt Rawdon mine, located in Queensland’s Wide Bay region, has been a cornerstone of Evolution’s gold production for over a decade. As mining operations near the end of their commercial life, the company is repurposing the site into a pumped hydro energy storage facility—a forward-thinking move that exemplifies the shift from traditional resource extraction toward sustainable infrastructure development. The planned hydro project will be managed by Mt Rawdon Pumped Hydro Pty Ltd (MRPH), a 50:50 joint venture between Evolution and ICA Partners. CleanCo’s involvement provides a critical boost, signalling state-level confidence in the viability of the project and in Evolution’s transformation beyond mining.
Pumped hydro storage works by moving water between two reservoirs at different elevations to store and generate electricity. When energy is abundant and demand is low, water is pumped to the upper reservoir; when demand peaks, water is released downhill through turbines to generate power. The Mt Rawdon site, with its existing pit and surrounding geography, presents a low-capital, high-potential opportunity for this type of project. Evolution believes the site could become one of the most advanced and cost-effective pumped hydro storage systems in Australia, directly contributing to grid reliability and supporting Queensland’s 70% renewable energy target by 2032.
Financial Upside and Government Partnership
The Development Investment Agreement (DIA) signed by Evolution, ICA Partners, MRPH, and CleanCo includes several layers of financial commitment and upside. Beyond the AU$30 million already committed to feasibility studies by September 2025, CleanCo has secured the option to acquire MRPH for AU$50 million. Should CleanCo decide to exercise this option, an additional AU$100 million in deferred consideration could be triggered if a final investment decision is made before June 2028. Furthermore, Evolution stands to receive AU$90 million from the sale of land at the mine site if the acquisition progresses—representing a significant monetisation of legacy assets and unlocking value beyond gold production.
This partnership is more than a financial win for Evolution. It cements the company’s role in Queensland’s renewable energy roadmap and reinforces its adaptability in a rapidly evolving resources landscape. From a capital allocation standpoint, the project is expected to be earnings accretive and capital efficient, providing a compelling case to investors looking for exposure to diversified energy assets. With a market capitalisation nearing AU$12 billion and an average annual gold production of 650,000 ounces, Evolution is leveraging its strong balance sheet and operational experience to support this transition.
Aligning with Australia’s Energy Transition
At a national level, the Mt Rawdon project serves as a blueprint for how resource companies can contribute to Australia’s clean energy future. The country’s grid stability and renewable integration increasingly depend on large-scale storage solutions, with pumped hydro emerging as a proven technology. According to the Australian Energy Market Operator (AEMO), over 20 GW of energy storage will be required by 2050 to accommodate rising solar and wind penetration. Projects like Mt Rawdon, which capitalise on existing mining infrastructure and geological advantages, are therefore critical to achieving these targets in a cost-effective and timely manner.
Evolution’s pivot toward energy aligns with its broader ESG strategy and long-term shareholder value creation. The company has committed to a net-zero carbon emissions goal by 2050 and aims to reduce operational emissions by 30% by 2030. Initiatives such as Mt Rawdon not only reduce its environmental footprint but also serve as a hedge against commodity market volatility.
In an environment where investors are increasingly rewarding sustainability and innovation, Evolution’s diversification into clean energy offers a compelling narrative of resilience and growth.
The involvement of CleanCo, a key pillar in the Queensland Government’s clean energy portfolio, provides further validation. CleanCo currently supports over 1,100 MW of renewable generation assets and aims to provide affordable, reliable, and clean electricity to Queenslanders. Its commitment to the Mt Rawdon project underscores the alignment between public and private sector goals in the transition to a low-carbon economy.
As global economies push for decarbonisation, Evolution Mining’s Mt Rawdon initiative represents a smart convergence of legacy assets, government partnerships, and sustainability-driven growth. With feasibility studies underway and substantial financial backing in place, the company is well positioned to lead the mining sector into a future powered not just by minerals, but by clean energy.
