Key Points
-
Harmony Gold plans a $4–5 billion copper venture in Papua New Guinea with Newmont Corporation.
-
Company holds R13 billion in cash and R7 billion in credit lines to fund international expansion.
-
Recent MAC Copper acquisition strengthens Harmony’s global copper portfolio.
Harmony Gold, South Africa’s largest gold producer, is exploring a major copper investment in Papua New Guinea with U.S. miner Newmont Corporation, billionaire Patrice Motsepe said Tuesday.
“There’s a huge investment that we are currently looking at in Papua New Guinea,” Motsepe told Bloomberg. “We’ve got a partnership there with Newmont that might require as much as four or five billion dollars to be invested down the line.”
Financial Position Supports Large-Scale Project
Harmony holds R13 billion ($754.8 million) in cash and has access to another R7 billion ($406.4 million) in credit. Motsepe said the company plans to allocate part of that capital to projects in Australia and Papua New Guinea, where copper remains central to growth. He added that shareholders expect the company to pursue opportunities in these regions.
The potential Papua New Guinea venture aligns with rising demand for metals critical to cleaner energy systems.
Expansion Across Regions and Minerals
African Rainbow Minerals, Motsepe’s firm and a key Harmony investor, continues to invest in gold, platinum group metals, iron ore, and manganese in South Africa, while maintaining a copper position in Canada.
Harmony operates mines in South Africa, Papua New Guinea, and Australia. Its Australian copper portfolio includes the Eva Copper Project, which aims to produce up to 60,000 tonnes of copper annually once operational.
Motsepe holds an 11.8 percent stake in Harmony through African Rainbow Minerals and has backed the company since its 2003 merger with Avmin. Harmony’s recent MAC Copper acquisition strengthens its international copper portfolio.
Revenue Growth and Latest Acquisition
Harmony reported revenue of R73.9 billion ($4.3 billion) for its latest financial year, up from R61.4 billion ($3.56 billion) previously, driven by a 27 percent rise in average gold prices to R1.53 million ($88,810) per kilogram.
In late October, Harmony completed a $1.01 billion purchase of Australia’s MAC Copper, reinforcing its position in the copper market while evaluating its next investment with Newmont in Papua New Guinea.
