South Africa’s largest gold producer by volume, Harmony Gold Mining Company Limited, has reached an agreement to acquire Australian copper mining company Mac Copper Ltd in a deal valued at $1.03 billion. This move is part of Harmony’s strategy to diversify its mineral portfolio and reduce dependence on gold by investing more in copper, a metal seen as vital for the future of green energy and electronics.
In a statement issued from its headquarters in Johannesburg, Harmony Gold said it will pay $12.25 per share to acquire 100% of Mac Copper. This offer represents a 20.7% premium over Mac Copper’s last closing share price on the New York Stock Exchange as of Friday. Mac Copper’s board has unanimously approved the offer, confirming its support for the acquisition.
Mac Copper owns the CSA Copper Mine, located in New South Wales, Australia. The mine produced 41,000 metric tons of copper in 2024. According to Harmony Gold, this acquisition stands out because the CSA mine is already in production and will bring in immediate cash flow, unlike greenfield projects that require years of development.
Harmony said the purchase will be financed using a combination of the company’s internal cash reserves and a $1.25 billion loan facility. The mining company’s shares, however, dropped by 6.3% on the Johannesburg Stock Exchange following the announcement, as some investors reacted cautiously to the size of the deal and the added debt.
This is not Harmony’s first step into Australia’s copper sector. In 2022, the company acquired the Eva Copper Project in Queensland, a mine that is expected to begin production between 2029 and 2030, with an annual output of 55,000 to 60,000 metric tons of copper once it becomes operational. The latest deal signals Harmony’s growing interest in making copper a central part of its business alongside gold.
Harmony CEO Beyers Nel described the acquisition as a major step forward in the company’s transformation into a global gold and copper producer. He added that Harmony’s long-standing experience in deep-level underground mining in South Africa would be valuable in boosting operations at the CSA mine.
The company is also a co-owner of the Wafi-Golpu gold-copper project in Papua New Guinea, a venture it shares with Newmont Corporation. Though the Wafi-Golpu project has faced delays over regulatory and community concerns, Harmony continues to view it as a long-term investment.
South African mining companies like Harmony and Gold Fields have in recent years increased efforts to expand their operations outside South Africa. This shift is largely due to rising costs and technical challenges associated with operating in the country’s deep gold mines, which are some of the deepest in the world. In comparison, projects in Australia and other countries often offer lower operating costs, better infrastructure, and more regulatory stability.
Industry analysts see Harmony’s latest move as part of a broader global trend where mining companies are repositioning their asset portfolios to include more copper, a metal crucial for renewable energy technologies like electric vehicles, wind turbines, and solar panels. Demand for copper is projected to rise sharply in the coming years, driven by the global energy transition and digital infrastructure growth.
If completed, the Mac Copper acquisition will not only expand Harmony’s geographical footprint but also strengthen its position in the growing global copper market. The deal reflects a clear shift in the company’s long-term vision from being just a gold miner to becoming a diversified producer with exposure to multiple critical minerals.
