Harmony says copper push is diversification, not a change in identity
South Africa-headquartered Harmony Gold Mining Company says its expansion into copper is not a departure from its 75-year history as a gold producer, but a deliberate strategy to diversify its commodity exposure as long-term demand for copper accelerates.
Speaking in the fifth and final episode of Creamer Media's IN FOCUS copper series, CEO Beyers Nel said the company's investments in Australia and Papua New Guinea reflect a conviction that gold and copper complement one another through commodity cycles.
"Gold is that store of value in times of economic uncertainty, whereas copper is that growth lever and that leverage to times of economic strength," he said.
Harmony expects copper to account for about 40% of its production within the next decade, with the remaining 60% coming from its South African gold operations. However, Nel stressed that the company's growing copper footprint should not be interpreted as a shift away from gold.
"This is not a change in identity," he said, describing the strategy as one that diversifies Harmony's commodity exposure by adding copper alongside its gold business.
The strategy is underpinned by three key assets. Harmony's recently acquired CSA underground mine in Australia is already producing copper, while the Eva Copper project in Queensland is expected to lift combined production from the two operations to about 100 000 t/y once commissioned.
Longer term, the Wafi-Golpu copper/gold project in Papua New Guinea represents what Nel described as a "generational asset", with the potential to produce about 180 000 t/y of copper and 250 000 oz/y of gold on a 100% basis. The project is currently progressing through the permitting phase.
Nel said Harmony was "very bullish" on copper, citing the expected structural supply deficit and the role of the metal in electrification and the energy transition. He added that the company believed it had invested at an opportune point in the commodity cycle, with the CSA and Eva assets well positioned to supply a market expected to remain undersupplied.
He also said the scramble for top-tier copper assets had opened opportunities in the middle of the market, describing the CSA and Eva mines as projects that are "probably too big for the juniors to build" but not large enough to be priorities for the major mining houses, leaving an attractive space for companies such as Harmony.
Harmony has phased its entry into copper, starting with immediate production from CSA, followed by near-term production from Eva and longer-term growth through Wafi-Golpu, positioning the company to become a meaningful international copper producer while maintaining its position as one of South Africa's leading gold miners.
The interview formed part of the fifth and final episode of Creamer Media's five-part IN FOCUS series examining the demand, supply, geopolitical and investment trends shaping the future of the copper market. Watch all five episodes here.
