Harmony Gold Mining to acquire MAC Copper for CSA Copper Mine

Why Harmony Gold Mining Company Is Paying $1.03 Billion for MAC Copper Limited and the CSA Mine

Harmony Gold Mining Company Limited has announced a definitive move to deepen its global footprint in the copper sector by acquiring MAC Copper Limited, the Jersey-incorporated owner of the CSA Copper Mine in New South Wales, Australia. The acquisition, valued at US$1.03 billion in cash, is being conducted through Harmony Gold Mining’s wholly owned Australian subsidiary. The strategic rationale behind the deal is clear: secure a producing, high-grade copper asset that generates immediate cash flow in a Tier-1 mining jurisdiction. Amid intensifying global focus on decarbonization and infrastructure electrification, copper has emerged as a vital commodity. Harmony Gold Mining Company’s decision aligns with broader industry shifts as miners seek stable, long-life copper assets to meet rising structural demand.

What Makes the CSA Copper Mine Valuable to Harmony Gold Mining Company

The CSA Copper Mine is located roughly 700 kilometers northwest of Sydney in the Cobar Basin, one of Australia’s most historic mining regions. It produced more than 41,000 tonnes of copper in 2024 and maintains a 12-year reserve life with significant upside through newly identified mineralization. Harmony Gold Mining Company is acquiring not just a producing asset but one that delivers strong operational margins. The mine operated at a C1 cash cost of US$1.92 per pound and an all-in sustaining cost of US$2.92 per pound in 2024, translating into an operating free cash flow margin of 36%. The mine’s reserve grade of 3.4% Cu places it among the highest-grade copper operations in the country. Furthermore, the development of the Merrin Mine—located closer to the surface and containing additional zinc potential—is expected to bring new output online by the December quarter of 2025. These features align seamlessly with Harmony Gold Mining Company’s strategy to transition into a multi-commodity, globally diversified miner with operations in stable regions.

How Harmony Gold Mining Company Structured the Transaction and How It Is Being Financed

The acquisition will be executed via a Jersey law scheme of arrangement. Harmony Gold Mining Company Limited has agreed to pay US$12.25 per MAC Copper Limited share, which represents a 32.1% premium to the 30-day volume weighted average price and a 20.7% premium to the last closing price. This translates into a total equity value of US$1.03 billion. The transaction is being funded through a fully committed US$1.25 billion bridge facility arranged by Citibank, J.P. Morgan, and Macquarie Bank, alongside Harmony Gold Mining Company’s own cash reserves. As of March 2025, Harmony Gold Mining Company reported a net cash position of R10.83 billion (US$592 million) and liquidity in excess of R20.85 billion (US$1.14 billion), leaving ample headroom for capital management post-acquisition. Crucially, net debt to EBITDA will remain below 1.0x, maintaining the company’s financial flexibility for future organic and inorganic expansion.

What Shareholders and Institutions Are Saying About the Deal

The board of directors of MAC Copper Limited has unanimously recommended that shareholders vote in favor of the deal, absent a superior proposal. Directors who collectively control 2.4% of the company’s equity have publicly stated their intention to vote in support. Additionally, several cornerstone investors—including Fourth Sail Group, Osisko Bermuda Limited, Sprott Resource Lending II, Victor Smorgon Group, and BEP Special Situations VI LLC—who together own approximately 20.1% of MAC Copper Limited, have confirmed their support. On the institutional side, early market signals suggest a cautiously optimistic view. While Harmony Gold Mining Company shares showed slight volatility following the announcement, analysts at major investment houses noted that the cash-generative nature of the CSA asset and the absence of a financing contingency de-risk the transaction from an execution standpoint. The deal is not subject to shareholder approval from Harmony Gold Mining Company’s side, further enhancing certainty of closure.

Why This Acquisition Aligns with Sector Trends in Copper and Mining

The acquisition of MAC Copper Limited places Harmony Gold Mining Company at the heart of a global shift toward critical minerals, particularly copper, which is increasingly viewed as an enabler of the energy transition. Supply-side constraints and the lack of new greenfield developments have intensified the value of existing operations like the CSA Copper Mine. Harmony Gold Mining Company’s move comes amid broader M&A activity in the copper space, with major players like BHP Group, Rio Tinto, and Teck Resources also targeting scalable assets in stable jurisdictions. The integration of CSA into Harmony Gold Mining Company’s portfolio adds geographic diversification and enhances its presence in Australia, building on the company’s established operations at Hidden Valley in Papua New Guinea and the Eva Copper Project in Queensland. Analysts expect Harmony Gold Mining Company’s copper output to reach close to 100,000 tonnes annually within five years, reshaping its revenue composition and reducing its historical reliance on South African gold mining.

What Streaming and Royalty Agreements Harmony Gold Mining Company Will Inherit

Harmony Gold Mining Company will assume all existing obligations associated with MAC Copper Limited’s streaming and royalty agreements. This includes a silver purchase agreement with Osisko Bermuda Limited, which entitles Osisko to 100% of payable silver at 4% of the spot price, and a copper stream agreement allowing Osisko to receive between 2.25% and 4.875% of payable copper, also priced at 4% of spot. Additionally, Glencore Operations Australia Pty Limited holds a 1.5% net smelter return royalty over the life of the CSA mine. There are also contingent payments due to Glencore—two tranches of US$75 million each—if the copper price averages above US$4.25/lb for 18 continuous months or above US$4.50/lb for 24 months. Harmony Gold Mining Company intends to restructure these agreements post-acquisition, aligning them with the group’s financial and operational strategies.

What the Financials of MAC Copper Limited Reveal About the Opportunity

MAC Copper Limited reported an EBITDA of US$168 million for the year ending 31 December 2024, with an EBITDA margin of approximately 49%. The company posted a net loss after tax of US$82 million, attributed largely to non-cash items and financing costs associated with the acquisition of the CSA mine in 2023. Operational performance has improved under MAC Copper Limited’s stewardship, with cost controls, resource expansion, and exploration drilling all contributing to the asset’s upward trajectory. Harmony Gold Mining Company conducted extensive due diligence—including four technical site visits—prior to sealing the deal, reflecting high confidence in the operational readiness and long-term value of the asset.

What Comes Next: Deal Timelines and Regulatory Outlook

Harmony Gold Mining Company expects to complete the transaction by the fourth quarter of 2025, subject to shareholder approval from MAC Copper Limited, regulatory clearance from the Australian Foreign Investment Review Board, the South African Reserve Bank, the Australian Securities Exchange, and final court sanctioning by the Royal Court of Jersey. A scheme circular is scheduled for release in September 2025, followed by a shareholder vote on the scheme and accompanying resolutions. Upon completion, MAC Copper Limited will be re-domiciled as a wholly owned subsidiary and its corporate governance structures brought into alignment with Johannesburg Stock Exchange standards. The Implementation Deed includes standard deal protection mechanisms, such as a US$23.6 million break fee and a US$11.8 million reverse break fee, ensuring alignment between parties through closing.

Investor Sentiment and Future Outlook for Harmony Gold Mining Company

From a sentiment perspective, the deal has elevated Harmony Gold Mining Company into a new competitive bracket. Investors tracking the copper transition narrative view the CSA Copper Mine acquisition as a rare opportunity to obtain cash-flow-positive exposure without the risk of greenfield project delays. Analysts anticipate that the company will use CSA’s cash flows to accelerate development at the Eva Copper Project and explore additional M&A options within Australia and North America. If copper prices maintain their structural momentum above US$4.00/lb, Harmony Gold Mining Company’s multi-asset copper strategy could yield significant shareholder value by 2027. The company now has both the geographic and operational positioning to respond nimbly to the mineral demands of a decarbonizing global economy.