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Harmony Gold, South Africa’s largest gold producer, backed by Patrice Motsepe, Africa’s first Black billionaire, is weighing a major copper venture in Papua New Guinea with U.S. miner Newmont Corporation, Motsepe said Tuesday.
“There’s a huge investment that we are currently looking at in Papua New Guinea,” Motsepe said at a Bloomberg event. “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.”
Large-scale project under review
Motsepe said Harmony’s finances are strong enough to support a project of that size. The company holds R13 billion ($754.8 million) in cash and has access to another R7 billion ($406.4 million) in credit lines.
He said the group expects to allocate a sizeable share of that capital to Australia and Papua New Guinea, where copper prospects remain central to future growth. Shareholders, he added, expect Harmony to pursue opportunities in those regions.
The potential investment in Papua New Guinea aligns with rising demand for metals needed in the global shift toward cleaner energy systems, Motsepe said.
Expanding across regions and minerals
African Rainbow Minerals, which Motsepe founded and which is one of Harmony’s key investors, will continue to invest in gold, platinum group metals, iron ore and manganese in South Africa. It also maintains a copper position in Canada.
Founded in 1950, Harmony operates mines in South Africa, Papua New Guinea and Australia. Its copper portfolio in Australia has grown in recent years, anchored by 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. He has been a key backer since the company’s merger with Avmin in 2003. The recent MAC Copper acquisition marks another step in Harmony’s effort to broaden its international presence.
Revenue lift and latest acquisition
Harmony reported revenue of R73.9 billion ($4.3 billion) in its latest financial year, up from R61.4 billion ($3.56 billion) previously, supported by a 27 percent rise in the average gold price to R1.53 million ($88,810) per kilogram.
In late October, the Johannesburg-based miner closed its $1.01 billion purchase of Australia’s MAC Copper, strengthening its position in the copper market as it evaluates its next round of investments with Newmont in Papua New Guinea.
