Harmony Gold Locks In US$1.1 Billion Copper Expansion Deal

Africa · Southern

Harmony Gold’s copper expansion took a decisive step forward on 28 July 2026, when the Johannesburg-based miner announced an oversubscribed multi-currency loan package worth roughly R20 billion (US$1.1 billion) to refinance debt and fund its growing Australian copper portfolio.

A South African miner bets big on Australian copper

Harmony Gold, long known as a deep-level gold miner on the Witwatersrand Basin, is reshaping its identity around copper. The company’s new syndicated facilities total US$500 million, A$500 million, and R7 billion, replacing shorter-term bridge debt with longer-dated instruments across three currencies.

The refinancing attracted commitments roughly three times the target amount, with about 93 percent lender participation. Harmony said the strong demand allowed it to reduce funding costs and strengthen its liquidity position.

The MAC Copper deal laid the foundation

The financing package directly supports Harmony’s acquisition of MAC Copper Limited, completed earlier in 2025. Harmony paid US$12.25 per share, implying an equity value of US$1.03 billion, or about R18.4 billion at the time.

The purchase was initially funded through a US$1.25 billion bridge facility and existing cash balances. By September 2025, Harmony had drawn US$875 million of that bridge loan, with the remainder covered from its own treasury.

Eva Copper: the real prize in the Harmony Gold copper expansion

Beyond the MAC Copper refinancing, the centrepiece of Harmony’s copper strategy is the Eva Copper project in Queensland. Harmony acquired the asset in March 2022 for US$170 million upfront, with up to US$60 million in contingent payments.

A revised feasibility study later pushed the development price tag far higher. In November 2025, Harmony’s board sanctioned US$1.55 billion to US$1.75 billion to advance the project, with first production expected in the latter part of 2028.

Once operational, Eva Copper is forecast to produce around 65,000 tonnes of copper concentrate annually in its first five years. Over a roughly 15-year mine life, average output is expected at 60,000 tonnes of copper and 20,000 ounces of gold per year.

Why copper, and why now

Harmony’s pivot is a direct response to copper’s structural demand story. The metal is essential for power grids, electric vehicles, data centres, and renewable energy systems, making it one of the most sought-after minerals in the energy transition.

A rally in gold prices gave Harmony the balance-sheet strength to move. Mining.com reported that the company’s net cash position reached nearly US$400 million, providing roughly US$1 billion in capacity for growth projects, according to executives.

The great-power contest over critical minerals

Harmony’s copper push sits inside a larger geopolitical frame. Control over copper supply chains has become a strategic priority for the United States, the European Union, and Japan, all of whom have launched initiatives such as the Minerals Security Partnership to counterbalance Chinese dominance in resource processing.

While Harmony’s assets are in Australia, the capital is being assembled from a South African corporate base with international bank liquidity. That structure reflects the increasingly borderless nature of critical-mineral finance, a theme explored in our pillar Africa: The New Scramble.

What the deal means for South Africa and the region

South Africa’s mining sector remains economically significant, contributing R356 billion, or 7.3 percent of GDP, and accounting for a quarter of export earnings in recent years. Yet the country’s copper output is modest compared with regional heavyweights Zambia and the Democratic Republic of Congo.

Harmony’s move shows how a South African mining house can use its Johannesburg listing and deep capital markets to fund projects abroad. It also signals that the country’s mining champions are looking beyond gold and platinum group metals for growth.

What to watch next

Investors will now focus on execution risk at Eva Copper, where the capital bill is large and the timeline stretches to late 2028. Harmony has said it intends to fund the project through internal cash flow and capital-efficient debt instruments, avoiding dilutive equity raises.

The broader copper market also bears watching. Any sustained softening in prices could pressure the economics of new supply, even as the long-term demand narrative remains intact.

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Frequently Asked Questions

What is the Harmony Gold copper expansion?

The Harmony Gold copper expansion is the company’s strategic move beyond South African gold into copper mining. It centres on the MAC Copper acquisition and the Eva Copper project in Queensland, Australia, funded through a R20 billion multi-currency refinancing package announced in July 2026.

How much will the Eva Copper project cost to build?

Harmony’s board sanctioned US$1.55 billion to US$1.75 billion for the Eva Copper project after a revised feasibility study. The mine is expected to produce around 65,000 tonnes of copper concentrate annually in its first five years, with first production planned for late 2028.

Why is Harmony Gold investing in copper instead of gold?

Copper is a critical mineral for the global energy transition, with strong demand from power grids, electric vehicles, and renewable energy systems. Harmony is using cash generated from high gold prices to diversify into a metal with better long-term demand visibility and strategic importance.