Harmony Gold has moved a step closer to expanding its copper portfolio after MAC Copper shareholders voted in favour of selling the company to Harmony’s Australian subsidiary.
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The approval, announced on Monday, September 1, paves the way for Harmony to acquire 100% of MAC Copper through a Jersey law scheme of arrangement. MAC Copper owns the high-grade CSA copper mine in Cobar, New South Wales.
The deal follows regulatory approvals from the South African Reserve Bank earlier in August and Australia’s Foreign Investment Review Board later that month. A court sanction hearing is scheduled for October 9, with completion expected by the end of that month.
Harmony chief executive Beyers Nel said the acquisition would fast-track the company’s strategy of building a portfolio of long-life, high-margin assets.
“This acquisition accelerates Harmony’s strategy of adding to our portfolio of high-margin, long-life ore bodies. MAC Copper serves as a strategic lever, moving us towards a more resilient, geographically diverse asset portfolio, with copper enhancing cash flow resilience. With our proven expertise in underground mining and exploration, we will unlock further value from CSA,” Nel said.
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The CSA mine is expected to add about 40,000 tonnes of copper production a year to Harmony’s portfolio. The company said the mine would have a positive cash flow from the outset, offering a high-grade, low-cost operation in a Tier 1 jurisdiction.
Funding for the acquisition will be covered through a mix of cash and debt facilities, a structure Harmony said would preserve shareholder returns while maintaining balance sheet strength.
By adding copper, Harmony also gains exposure to a key commodity in the global energy transition, helping offset volatility in the gold price.
The transaction still depends on several customary conditions, including court sanctioning and the fulfilment of terms under a Streams Restructure Deed.
If successful, Harmony will take control of the CSA mine before the end of October.