South African giant buying Australian company for R18 billion

South African mining giant Harmony Gold is looking to acquire Australia-based MAC Copper for over R18 billion

MAC Copper has only one asset in the CSA Copper Mine, roughly 700 km from Sydney, New South Wales.

“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,” said CEO Beyers Nel. 

“CSA is one of the highest-grade copper mines in Australia, producing ~41kt of copper in calendar year 2024.” 

Nel added that the operation is a logical fit with the portfolio, given it meets Harmony’s core investment criteria, such as increasing free cash flow generation while improving margins at long-term expected commodity prices. 

Harmony added that it is well-positioned to leverage its expertise in underground mining to further enhance operations. 

It added that the move represents a significant step towards Harmony’s transformation into a derisked global gold and copper producer. 

Harmony has already operated in Australia after purchasing the Eva Copper Project in Queensland, Australia, in 2022. 

The group added that CSA is one of the highest-grade copper mines in Australia, producing over 40ktpa of copper in concentrate.

It added that CSA has a current reserve life of +12 years and has maintained a stable resource base over the last decade. 

The offer price of US$12.25 per MAC share in cash implies a fully diluted equity value for MAC of US$1.03 billion, roughly R18.4 billion. 

The officer price represents a 20.7% premium to MAC’s last closing price of US$10.15 per share on the NYSE. 

It also offers a 32.1% premium to the 30-day volume-weighted average price of US$9.28 per share as of Friday, 23 May 2025.

The MAC board has unanimously recommended that MAC shareholders vote in favour of the takeover. 

Subject to several conditions, Harmony said that the transactions should be completed in the December Quarter of 2025.