The South African Miner, Harmony Gold (HARJ.J) announced on Monday that its board has approved an investment ranging from $1.55 billion to $1.75 billion to develop its Australian copper project after finalizing an updated feasibility study.
The company, South Africa’s largest gold producer by volume, is expanding into copper as gold mining at home becomes increasingly expensive and more geologically complex, while demand for copper continues to rise due to its key role in electric vehicles and power grid infrastructure.
Harmony acquired the Eva Copper project in Queensland in 2022. According to the company, the mine is projected to produce roughly 65,000 metric tons of copper concentrate annually during its first five years, with life-of-mine output expected to average 60,000 tons of copper and 19,000 ounces of gold over an estimated 15-year lifespan.
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The approved investment will be rolled out over three years and funded through internal cashflow and what Harmony described as capital-efficient debt instruments.
Production is anticipated to begin in the second half of 2028, a timeline the company says aligns with a structural copper supply gap that is expected to support stronger prices.
Chief Executive Beyers Nel said Harmony’s recent MAC Copper acquisition, combined with Eva Copper, is expected to deliver around 100,000 tons of copper annually once both operations are fully running.
“The project provides compelling exposure to robust copper fundamentals and, when combined with the current strength in gold prices, offers significant upside potential,” Nel said.
“We have confidence in the long-term outlook for copper and gold, and Eva Copper is poised to deliver strong free cashflows and attractive margins while reducing our overall risk profile.”
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Image Credit: Finanacial Mail
