A small toy figure and gold imitation are seen in front of the Harmony logo in this illustration taken November 19, 2021.
As South Africa’s largest gold producer by volume, the company is expanding into copper production. This move comes as gold mining in South Africa faces rising costs and increasing geological complexity, while demand for copper continues to grow due to its essential role in electric vehicles and electricity grid infrastructure.
Harmony acquired the Eva Copper project in 2022. Once operational, the mine is projected to produce approximately 65,000 metric tons of copper concentrate annually during its first five years, with average annual output of 60,000 tons of copper and 19,000 ounces of gold over an expected 15-year mine life, according to the company’s statement.
The capital expenditure will be spread over three years and funded through a combination of internal cash flows and capital-efficient debt facilities.
Commercial production at Eva Copper is scheduled to start in the second half of 2028, a timeline the company believes will coincide with a sustained period of strong copper market fundamentals and elevated prices.
When combined with the recently acquired MAC Copper project, the two assets are expected to contribute a total of around 100,000 tons of copper per year at full capacity, Harmony stated.
Chief Executive Beyers Nel commented: “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 cashflows and attractive margins while reducing our overall risk profile,” Nel added.
The approval marks a major step in Harmony Gold’s strategy to diversify its portfolio and establish a substantial presence in the global copper market alongside its established gold operations.
