Harmony Gold Mining Company (NYSE:HMY), South Africa's largest gold producer, announced on Tuesday its $1.03 billion acquisition of Australian copper miner Mac Copper (NYSE:MTAL). The all-cash deal, valued at $12.25 per share, reflects a 20.7% premium over Mac Copper's last NYSE closing price.

This strategic move marks Harmony's significant diversification into copper mining, aiming to strengthen its long-term cash flow and reduce dependency on gold. Mac Copper owns the CSA Copper Mine in New South Wales, a high-grade asset expected to produce around 41,000 tonnes of copper in 2024. The acquisition will complement Harmony's existing gold operations in South Africa and Papua New Guinea.

Harmony will finance the transaction through a $1.25 billion bridge loan facility and its available cash reserves. The deal is slated for completion in the December quarter of 2025, subject to regulatory and shareholder approvals.

Mac Copper's board has unanimously recommended the offer, and key shareholders, including Osisko Bermuda and Sprott Resource Lending, have voiced support for the transaction.

The acquisition positions Harmony to benefit from growing global demand for copper, a critical metal in the green energy transition and electrification trends. Investors view the move as a timely pivot toward a more diversified resource portfolio, as copper prices remain supported by long-term infrastructure and renewable energy needs.

This deal underscores an ongoing trend of consolidation in the mining sector, as major players seek strategic assets to future-proof their operations against market volatility and commodity shifts. Harmony's entrance into copper aligns with broader industry efforts to secure exposure to critical minerals driving global economic transformation.