Harmony Gold’s R18 Billion Australian Copper Deal Signals Bold Global Shift

South African mining heavyweight Harmony Gold is making a powerful international play — this time in Australia. The company has announced plans to acquire MAC Copper, a Sydney-listed miner, in a deal valued at approximately R18.4 billion (US$1.03 billion). This marks a significant leap in Harmony’s ambition to become a top-tier global player not just in gold, but in copper too.

The deal centers around MAC Copper’s crown jewel: the CSA Copper Mine in New South Wales, about 700 kilometers from Sydney. Described as one of the highest-grade copper mines in Australia, CSA produced approximately 41,000 tonnes of copper in 2024 and boasts a reserve life of over 12 years. It’s a stable, long-term asset — and that’s exactly what Harmony is after.

Strategic Fit with Global Vision

Harmony Gold CEO Beyers Nel says the acquisition isn’t just about expansion; it’s about alignment. “CSA Copper is a natural fit for us — it supports our strategy to grow cash flow and improve operating margins over the long term,” Nel stated. “We also bring deep expertise in underground mining, which will add value to the operation.”

This isn’t Harmony’s first step into Australia. In 2022, the company acquired the Eva Copper Project in Queensland. But this latest move shows a clear shift: Harmony is no longer just exploring international opportunities — it’s seizing them.

A Premium Deal Backed by the Board

The purchase price of US$12.25 per MAC share represents a 20.7% premium on MAC’s last NYSE closing price and a 32.1% premium on its 30-day average trading value. That’s a strong offer — one the MAC board has unanimously recommended shareholders accept.

Subject to regulatory and shareholder approvals, the transaction is expected to close by the end of 2025.

What This Means for Harmony Gold

The acquisition bolsters Harmony’s portfolio with a producing copper mine that enhances its diversification and reduces risk tied solely to gold prices. It’s part of a broader transformation — one that could see Harmony evolve into a globally competitive, multi-commodity mining company.

In a volatile global market, having strong, high-grade assets in stable jurisdictions like Australia is an advantage. Harmony is betting big that this move will future-proof its business — and position it as a mining force to be reckoned with.

{Source: BusinessTech}

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