Miningweb: Shareholders greenlight Harmony Gold's R19bn copper acquisition

Key topics:Harmony Gold to acquire 100% of MAC Copper for $1.08B.CSA mine adds 40,000t annual copper, boosting cash flow.Expansion diversifies assets, hedging gold volatility globally..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up for the BizNews channel here..BizNews Reporter.South African gold producer, Harmony Gold, has advanced its international expansion strategy following the successful shareholder vote by MAC Copper in favour of its acquisition by Harmony's Australian subsidiary. This pivotal development paves the way for Harmony to acquire 100% of MAC Copper through a Jersey law scheme of arrangement, a deal valued at approximately $1.08 billion (R19 billion). MAC Copper is the sole owner of the high-grade CSA copper mine in Cobar, New South Wales, Australia.The acquisition is designed to enhance Harmony's asset portfolio significantly. The CSA mine will add approximately 40,000 tonnes of copper production annually. Harmony Gold has indicated that the mine is expected to generate positive cash flow from the outset, providing a high-grade, low-cost operation in a Tier 1 jurisdiction.Beyers Nel, Harmony's Chief Executive, highlighted the strategic rationale behind the acquisition. He stated, "This acquisition accelerates Harmony's strategy of adding to our portfolio of high-margin, long-life ore bodies. MAC Copper is a strategic lever, moving us towards a more resilient, geographically diverse asset portfolio, with copper enhancing cash flow resilience". Nel also emphasised that Harmony's proven underground mining and exploration expertise is expected to unlock further value from the CSA mine..Read more:.Miningweb: Implats boosts cash flow, declares R1.5bn dividend despite PGM headwinds.The transaction has progressed through several critical stages since its initial announcement in May. Key regulatory approvals were secured in August 2025, including sign-off from the South African Reserve Bank and the Australian Foreign Investment Review Board. With these approvals in place, the deal awaits a court sanction hearing scheduled for 9 October 2025, with completion anticipated by the end of October. The funding for this substantial acquisition will be managed through a mix of cash and debt facilities, which Harmony aims to utilise to preserve shareholder returns while maintaining balance sheet strength.Harmony Gold, headquartered in Randfontein, is recognised as South Africa's largest gold producer by volume. Its primary operations are located in the Free State and Gauteng provinces. The company has been actively pursuing diversification beyond its core gold operations, with previous offshore acquisitions including Papua New Guinea's Hidden Valley in 2016 and Australia's Eva Copper Project in 2022.This diversification into copper is also seen as a natural hedge against gold price volatility. Recent strong performance saw gold prices rally by more than 30% this year, contributing to Harmony's revenue increasing by a fifth to R73.9 billion and resulting in record free cash flow of R11.1 billion in the year to end-June. Furthermore, the acquisition strategically positions Harmony within the growing global copper market, where the metal is a key commodity in the global energy transition, with rising demand driven by sectors such as electric vehicles, solar panels, data centres, and artificial intelligence. While South Africa's copper industry contributes to mineral export earnings, generating approximately US $795.6 million in total copper exports in 2023, the nation remains a relatively smaller player than major producers like the Democratic Republic of Congo and Zambia. By acquiring the CSA mine, Harmony is expanding its copper footprint internationally.

Miningweb: Shareholders greenlight Harmony Gold's R19bn copper acquisition

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