Harmony Gold with a $1.03 billion USD bid for MAC Copper

Harmony Gold Mining Company Limited has publicly announced a transformative step in the company’s journey towards becoming a premier global gold and copper producer by entering into a binding agreement to acquire 100% of MAC Copper Limited, in a transaction valued at approximately $1.03 billion USD. This acquisition includes the CSA Copper Mine, one of Australia’s highest-grade copper operations.

CSA copper mine key information

Located in the Cobar Region of New South Wales, Australia, the CSA Copper Mine is a world-class underground operation with a history spanning nearly 150 years. Producing over 41,000 tonnes of copper in 2024 at competitive costs, CSA stands out for its:
1. 3.4% Cu grade with significant exploration potential.
2. A proven reserve life of 12+ years, with ongoing resource growth.
3. The development of the Merrin Mine will add both copper and zinc production starting in late 2025.

High-quality copper assets

Beyers Nel stated: “The acquisition of the CSA Copper Mine in Australia is significant as it introduces a high-quality, established underground producing copper asset to the Harmony portfolio. CSA is one of the highest-grade copper mines in Australia, producing ~41kt of copper in calendar year 2024. The operation is a logical fit with the portfolio given it meets Harmony’s core investment criteria, including increasing free cash flow generation while improving margins at long-term expected commodity prices. We believe that Harmony is well positioned to leverage its expertise in underground mining to further enhance operations. Furthermore, the Transaction represents a significant step forward in transforming Harmony into an increasingly de-risked, higher-quality, global gold and copper producer through disciplined and effective capital allocation”

Harmony’s deep expertise in underground mining positions the Company perfectly to enhance operations at CSA, focusing on sustainability, efficiency, and exploration. Moreover, with CSA and the Eva Copper Project, Harmony is on track to produce approximately of 100ktpa of copper in Australasia within five years. Furthermore, CSA’s established operations align with Harmony’s commitment to responsible mining and environmental stewardship.

Backed by a balance sheet

The transaction is backed by Harmony’s robust balance sheet and strategic funding partnerships. The company informs that it is also leveraging its established team in Brisbane, who will oversee operations at CSA alongside Hidden Valley and Eva Copper.

Bright future

CSA offers exciting upside opportunities, including resource growth, operational improvements, and the potential for zinc production. The ongoing development of the Merrin Mine and exploration activities will ensure that CSA remains a cornerstone of Harmony’s evolving portfolio.
This acquisition underscores Harmony’s commitment to disciplined, value-accretive growth, transforming our company into a leading global player in gold and copper mining.