Scotland-headquartered Aggreko has finalized a landmark 15-year PPA with Harmony Gold to develop Australia’s largest off-grid renewable hybrid power facility for the Eva copper project in Queensland. The facility will combine a 118 MWp solar farm, a 250 MWh battery energy storage system, and 104 MVA of thermal backup to support the AUD 2.4 billion open-pit mine. This project underscores a significant shift in the Australian resources sector toward low-emission energy, setting a new benchmark for off-grid power by optimizing renewable integration to reduce fuel consumption and improve emissions performance across the mine’s lifecycle.

SMM Morning Meeting Summary: Overnight, LME copper opened at $9,604.5/mt, fluctuated considerably to reach an intraday low before surging straight up to a high of $9,636.5/mt. It then fluctuated downward, touching a bottom of $9,578/mt near the close, and ultimately closed at $9,615/mt, marking a 1.24% increase. Trading volume reached 15,000 lots, and open interest reached 286,000 lots. Overnight, SHFE copper was closed.

According to a report from Mining.com, Harmony Gold, South Africa's largest gold producer, has agreed to acquire MAC Copper for US$1.03 billion, accelerating the company's strategic shift towards copper through a key asset in Australia. The all-cash acquisition will give Harmony full ownership of MAC Copper's sole asset, the CSA copper mine located in central-western New South Wales. CSA is Australia's highest-grade and oldest operating copper mine, dating back 150 years. With a mining depth reaching 1,900 meters, CSA is one of Australia's deepest underground mines. Harmony has offered to acquire MAC's shares at US$12.25 per share, a 20.7% premium over MAC's latest closing price on the New York Stock Exchange. MAC's board of directors unanimously supports the acquisition. Like Newmont and Barrick Gold, Harmony is also implementing a diversification strategy. The company is considering entering the copper market, a metal crucial for electric vehicles and power grid infrastructure. This transaction will expand Harmony's copper assets in Australia, following its purchase of the Eva copper mine project in Queensland in 2022. The Johannesburg-based mining company aims to bring Eva into production by 2028. With the addition of CSA and Eva, Harmony hopes to achieve an annual copper production of 100,000 mt within five years. Last year, CSA alone produced 41,000 mt of copper. Outside of Australia, Harmony also owns the Hidden Valley gold mine in Papua New Guinea and co-owns the Wafi-Golpu copper-gold mine with Newmont. The company is moving away from a single-focus gold mining model, as mining metals in South Africa has become increasingly complex and costly.

[Harmony to Acquire MAC Copper for $1.03 Billion, Expands High-Grade Copper Portfolio in Australia] On May 27, JSE-listed Harmony Gold Mining announced that its Australian subsidiary will acquire 100% of MAC Copper in a deal valued at approximately $1.03 billion, or $12.15 per share. MAC, registered in Jersey and listed on the NYSE, holds full ownership of the CSA copper mine in the Cobar region of New South Wales, Australia. The CSA mine produced 41,000 tonnes of copper in concentrate in 2023 and is one of the highest-grade underground copper mines in Australia. It has a current mine life of 12 years, a C1 cash cost of $1.93/lb, and an all-in sustaining cost of $2.92/lb, delivering a 36% operating free cash flow margin. MAC is also advancing the nearby Merrin copper-zinc project, targeting first ore production by year-end. Harmony CEO Beyers Nel said the acquisition adds a high-quality, established underground copper asset to the group’s portfolio, enhancing free cash flow and margins in line with Harmony’s long-term capital allocation strategy. The transaction will be implemented via a scheme of arrangement under Jersey law and requires approval by MAC shareholders (at least 75% of voting rights) and regulatory clearance in South Africa and Australia. The MAC board and key shareholders, including Osisko, Sprott, and the Victor Smorgon Group, have expressed support for the deal.

Around 16:00 Beijing time on Wednesday (April 16), just as the US pre-market session began, spot gold prices surpassed $3,300 per ounce and reached an intraday high of $3,317.82 around 16:18. This marked the third time in nearly five trading days that spot gold prices hit a record high, with daily gains exceeding 2%, peaking at 2.7%, and a cumulative increase of over 25% year-to-date. Meanwhile, the main US gold futures contract briefly rose to $3,334.2 per ounce, also setting a new high. Driven by the rise in gold, US gold mining stocks strengthened overall in pre-market trading, with Newmont Mining up 3.1%, Barrick Gold up over 3.6%, and Harmony Gold up more than 7.6%. Media analysis suggests that the escalating trade war has raised concerns about a global economic recession, and the unpredictability of tariffs announced by Washington has made it difficult for investors to establish long-term positions. In this environment, gold is seen as the most favored safe-haven asset. Tim Waterer, Chief Market Analyst at KCM Trade, stated, "Factors such as the depreciation of the US dollar and ongoing safe-haven demand are favorable for gold." The day before, US President Trump signed an executive order to investigate national security risks posed by the US's reliance on imported critical minerals and their derivatives—a move seen as a prelude to imposing tariffs, which could further escalate the trade war. Nicholas Frappell, Global Head of Institutional Markets at ABC Refinery, noted, "Increased tariff uncertainty, a tougher US government stance, and tariffs affecting goods transported through third countries could harm global supply chains," all of which support gold prices. Brian Lan, Managing Director of GoldSilver Central in Singapore, said, "As long as uncertainty persists, gold will continue to strengthen." Traders are also betting that the US Fed will cut interest rates at least three times this year, with monetary easing generally benefiting precious metals. ANZ believes that safe-haven buying of gold has not yet accelerated. The bank raised its year-end gold price forecast to $3,600 per ounce and its six-month gold price forecast to $3,500 per ounce. Last Friday, Goldman Sachs analysts predicted that gold prices would rise to $3,700 per ounce by the end of this year and reach $4,000 per ounce by mid-2026.

Harmony Gold acquired the Eva copper project in Australia in 2022 and is currently updating the feasibility study of the project. It is estimated that the project will take two years to build and will officially start production in 2028, with an annual copper output of 60,000 tons.

Gold and silver futures rose sharply on Wednesday, driven by a retreat in U.S. bond yields and the U.S. dollar.

As of last Friday April 7, the SMM Imported Copper Concentrate Index (weekly) stood at $81.76/mt, $1.43/mt higher than the previous week. During the week, the spot trading between traders and smelters was relatively lukewarm. Inquiries by buyers improved after the CSPT finalised the spot copper concentrate guidance TCs for the second quarter of 2023 at $90/mt and $0.09/lb. The current offers for clean ore scheduled for the shipment in the second quarter exceed $78/mt. Some buyers refrained from purchasing in anticipation of more supply. Traded TCs exceeded $85/mt. The price coefficient of Cu 20% domestic ore stood at 88.5-89.5%.