Harmony Gold Mining Company, South Africa’s biggest gold producer, has approved the development of the Eva Copper project in Queensland, Australia, for up to R30bn ($.175bn).
Eva, is a low-cost mine with an average production profile of 60,000 ounces of copper and 19,000 ounces of gold a year, underscoring a boost to the group’s geographical diversification.
Harmony which owns Mponeng, the deepest mine in the world, has been on an aggressive expansion spree after completing the acquisition of MAC Copper, which owns CSA Copper, also in Australia. The group also operates in Papua New Guinea.
Harmony CEO Beyers Nel said Eva was a compelling acquisition as it brought together the value of gold and copper, a future-facing metal paving the way for bolstering cash flows throughout different commodity cycles.
He said in addition to boosting group gold production, its Australian copper assets are expected to deliver a combined total of 100,000 tonnes of copper a year once fully commissioned.
“The project provides compelling exposure to robust copper fundamentals and, when combined with the current strength in gold prices, offers significant upside potential. We have confidence in the long-term outlook for copper and gold, and Eva Copper is poised to deliver strong free cash flows and attractive margins, while reducing our overall risk profile,” he said.
The group said that with the green light for the investment, first production is expected in the second half of calendar year 2028, subject to Environmental Authority amendments.
Harmony, which has been riding the wave of the strong gold price, reported a 20% increase in gold revenue to R21.7bn during the quarter ended September.
The group said the project will be funded through a balanced mix of internal cash flows and capital-efficient debt instruments.
Nel said Harmony’s diversification into a Tier 1 mining jurisdiction strengthens its long-term value proposition as a global gold and copper producer.
He described Queensland, Australia, as a prospective historic mining region with good regional infrastructure and mining skills.
“A diversified commodity mix of gold and copper positions the company for long-term value creation. Copper, a critical metal, complements our gold portfolio, offering counter-cyclical benefits and a strong price outlook, enhancing resilience and growth potential,” he said.
An independent analysis by economics firm ACIL Allen estimated the project will add more than R189bn (A$17bn) to Queensland’s gross state product over its anticipated 15-year mine life, while providing significant new employment opportunities.
TimesLIVE
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