More mergers and acquisitions expected in copper market after Harmony deal

MORE mergers and acquisitions are expected for the global copper market in which South Africa is emerging as a key player amid a projected supply deficit.

- TAWANDA KAROMBO

There has been a flurry of investment activity in copper in the past few months, with Harmony Gold saying last week that it was acquiring Harmony the CSA Copper mine in Australia for R18.4 billion.

Last year, PwC said “the global pursuit of a just energy transition and the need for consolidation are reshaping the landscape of the South African mining” industry.

Now, analysts say there is likely to be further merger and acquisition activity in the South African and global copper industry.

Zimele Mbanjwa, an investment research analyst at FNB Wealth & Investments, told Business Report that single commodity producers are increasingly setting their eyes on copper assets, driving up sector investment activity.

“Gaining exposure to future critical minerals is a net positive and we can expect to see more of such transactions - particularly from single commodity producers,” said Mbanjwa.