South Africa’s leading gold producer by volume, Harmony Gold, has announced its agreement to acquire Australian firm Mac Copper Ltd in a deal valued at $1.03 billion, marking a major step in its strategic shift toward copper.
The Johannesburg-based miner confirmed it will pay $12.25 per share in cash for Mac Copper — a 20.7% premium over the company’s last closing price in New York on Friday. Mac Copper’s board has unanimously endorsed the offer, according to a company statement.
Mac Copper’s key asset, the CSA Copper Mine located in New South Wales, produced 41,000 metric tonnes of copper last year. Harmony said that acquiring a mine already in production ensures immediate cash flow. The purchase will be funded through Harmony’s internal cash reserves and a $1.25 billion loan facility.
Despite the announcement, Harmony’s shares dipped 6.3% during early trading on the Johannesburg Stock Exchange.
This acquisition is Harmony’s second copper-related deal in Australia, following its 2022 purchase of the Eva Copper Project in Queensland. That mine is expected to produce between 55,000 and 60,000 metric tonnes of copper annually from 2029.
The company has also considered development of the Wafi-Golpu gold-copper project in Papua New Guinea, a joint venture with Newmont Corp.
With rising costs and geological difficulties associated with South Africa’s deep-level gold mines, domestic producers such as Harmony and Gold Fields are increasingly looking abroad to expand their portfolios. Harmony said it will leverage its expertise in underground mining to enhance operations at Mac Copper’s CSA mine.
Chief Executive Officer Beyers Nel described the acquisition as a major milestone in Harmony’s evolution into a global gold and copper player.
