By Nqobile Dludla
JOHANNESBURG (Reuters) -Harmony Gold’s board has approved investment of between $1.55 billion and $1.75 billion to develop its Australian copper project after completion of an updated feasibility study, the South African miner said on Monday.
South Africa’s top gold producer by volume is diversifying into copper as gold mining in its home country becomes more costly and geologically challenging while copper’s allure is bolstered by its uses in electric vehicles and power grid infrastructure.
Harmony acquired the Eva Copper project in Queensland in 2022. The mine is expected to produce about 65,000 metric tons of copper concentrate a year for its first five years, with life-of-mine output averaging 60,000 tons of copper and 19,000 ounces of gold over an estimated 15-year lifespan, Harmony’s statement said.
The approved investment will be phased in over three years, funded through internal cashflow and what it described as capital-efficient debt instruments.
Production is expected to begin in the second half of 2028, aligning with a structural copper supply gap that would support higher prices, the company said.
Harmony’s recent MAC Copper acquisition and Eva Copper are expected to deliver a combined total of about 100,000 tons of copper a year when fully up and running, said Chief Executive Beyers Nel.
“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.”
(Reporting by Nqobile DludlaEditing by David Goodman)
