Major Acquisition Announced
Harmony Gold has announced a $US1.03 billion ($1.6 billion) deal to acquire MAC Copper. The acquisition has stirred significant interest in the Australian mining industry. Harmony will take over MAC’s key asset, the CSA copper mine near Cobar, New South Wales. CSA is among Australia’s highest-grade copper mines.
Harmony Gold acquires MAC Copper for a staggering $1.6 billion
CSA’s Strategic Value
MAC acquired CSA from Glencore in June 2023 for $US1.1 billion. The transaction saw Glencore retain a 1.5 per cent net smelter royalty. Glencore also agreed to offtake 100 per cent of the mine’s copper concentrate. MAC assumed full operational control of CSA and became the largest ASX mining listing in five years.
CSA Mine Output and Potential
CSA produces 40,000 tonnes of copper per year on average. The mine supports about 500 jobs and holds over 12 years of mine life. Harmony expects CSA to generate immediate cash flows and expand operating margins. The mine also offers strong exploration upside and long-term output stability.
Strengthening Portfolio Diversity
Harmony entered the copper sector with its 2022 purchase of the Eva copper project near Cloncurry, Queensland. Eva is an iron oxide copper-gold deposit. Harmony believes Eva will become the largest copper mine in north-west Queensland. The Queensland Government’s Resources Cabinet Committee is supporting the project’s advancement.
Synergy Across Assets
Harmony’s acquisition of MAC will consolidate its copper interests across two Tier 1 Australian jurisdictions. The CSA mine complements Eva, offering underground production experience and operational alignment. Harmony aims to use its expertise to improve CSA’s output and extend its productivity.
CEO Endorsements
Harmony CEO Beyers Nel said, “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.”
He added, “CSA is one of the highest-grade copper mines in Australia, producing (approximately) 41,000t of copper in 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.”
He further stated, “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.”
Funding and Shareholder Support
Harmony will finance the acquisition through a $US1.25 billion bridge facility and its cash reserves. The MAC board has unanimously supported the scheme. The board recommends shareholders vote in favour, citing limited conditionality and greater transaction certainty.
MAC CEO Mick McMullen said, “Having carefully considered the merits of the transaction, the MAC board has unanimously concluded that the scheme is in the best interests of MAC shareholders.”
He continued, “The board believes the transaction provides MAC shareholders with a compelling opportunity to de-risk their investment and realise an attractive cash value of $US12.25 per MAC share, which is also a premium to MAC’s recent historical trading levels.”
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McMullen stated, “The board is confident that Harmony will deliver positive outcomes not only at the mine, but also for the wider Cobar community. The transaction is a strong endorsement of the hard work and achievements of the MAC team over the last approximately two years.”
He concluded, “The board is extremely proud of the team’s significant efforts implementing numerous operational improvements at the CSA copper mine, simplifying and deleveraging the balance sheet and transforming the asset into the high-quality operation it is today. Alongside my fellow directors, I have no hesitation in supporting the transaction.”
Operational Integration and Contracts
Harmony will also acquire MAC’s existing contracts. These include copper and silver purchase agreements with Osisko and Glencore’s royalty agreement. These arrangements strengthen the acquisition’s value and ensure operational continuity.
Market Timing and Global Demand
The International Energy Agency predicts a 30 per cent copper supply shortfall by 2035. Harmony’s ownership of CSA and Eva positions it to address rising global demand. The transaction allows Harmony to leverage production amid growing clean energy infrastructure.
Expected Completion Timeline
If all conditions are met, the acquisition will conclude by the December 2025 quarter. Harmony is set to become a leading copper and gold producer through its disciplined expansion strategy. The deal reflects rising copper interest across global and domestic mining markets.
