Cobar’s banner mine CSA has been sold to South African interests for $1.6billion.

It has been regarded one of the best top grade copper mines in Australia.

South African company Harmony Gold is destined to become it’s new owner.

Harmony said acquiring CSA aligns with its “strategic objective of transitioning into a low-cost, global gold and copper mining company through disciplined and effective capital allocation”.

“The acquisition of the CSA copper mine in Australia is significant as it introduces a high-quality, established underground producing copper asset to the Harmony portfolio,” Harmony chief executive officer (CEO) Beyers Nel said.

“CSA is one of the highest-grade copper mines in Australia, producing (approximately) 41,000 tonnes of copper in 2024.

"The operation is a logical fit with the portfolio given it meets Harmony’s core investment criteria, including increasing free cash flow generation while improving margins at long-term expected commodity prices.

“We believe that Harmony is well positioned to leverage its expertise in underground mining to further enhance operations.”

Under the terms of the binding scheme implementation deed, MAC shareholders will receive $US12.25 per MAC share.

IMAGE: MAC Copper

MAC Copper bought the mine from another heavy hitter Glencore and in 2023 for $1.1 billion.

Mining experts say If the scheme is successful, Harmony will add another leading Australian copper asset to its portfolio, joining the Eva copper project near Cloncurry, Queensland.

MAC CEO Mick McCullen said ‘’The board of MAC unanimously supports the Transaction and unanimously recommends that MAC shareholders vote in favour of the Scheme, in the absence of a Superior Proposal.

"Subject to that same qualification, each of the directors of MAC have confirmed that they intend to vote all MAC shares held or controlled by them in favour of the Scheme a statement to the Australian Stock Exchange.’’

McMullen told the Australian Stock Exchange, “Having carefully considered the merits of the Transaction, the MAC board has unanimously concluded that the Scheme is in the best interests of MAC shareholders. MAC has recently updated the market with several developments including our larger reserve life, production guidance, the new Merrin Mine development and the recent debt refinancing which we feel has enabled the market to remain fully informed."

IMAGE: MAC Copper Ltd

"The Transaction also presents a great outcome for other stakeholders in the CSA Copper Mine, who will benefit from the stewardship of a well-respected and high-quality operator in Harmony,"McMullen said.

"The board is confident that Harmony will deliver positive outcomes not only at the mine, but also for the wider Cobar community."

The scheme is subject to being sanctioned by the Royal Court of Jersey, receiving approval from MAC shareholders, Australia’s Foreign Investment Review Board and the South African Reserve Bank, and obtaining relevant approvals, amendments, exemptions or waivers from Osisko and Glencore – both of whom MAC has existing contracts with.

If the transaction is approved by MAC shareholders, the scheme is expected to be implemented in the fourth quarter of 2025.