Harmony Gold’s Strategic Pivot: Patrice Motsepe Bets Billions on Copper Amid Global Energy Transition
In a major strategic shift that signals the changing dynamics of the global mining industry, Harmony Gold Mining Company is positioning itself to become a significant copper producer through a massive investment in Papua New Guinea, chairman Patrice Motsepe revealed at the Bloomberg Africa Business Summit 2025.
The Papua New Guinea Venture: A $5 Billion Copper Play
Motsepe announced that Harmony Gold is evaluating a substantial copper venture in Papua New Guinea in partnership with US mining giant Newmont Corporation. “There’s a huge investment that we are currently looking at in Papua New Guinea,” Motsepe stated during the Johannesburg summit. “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.”
Financial Capacity and Strategic Allocation
The South African mining executive emphasized that his company’s financial position is sufficiently robust for such a capital-intensive project. Harmony Gold currently holds R13 billion in cash with additional facilities available for a further R7 billion, providing the necessary liquidity to pursue this transformative investment.
“A lot of that money is going to be used in Australia and Papua New Guinea, which are primarily copper regions,” Motsepe explained, adding that shareholders would expect the company to capitalize on these opportunities in regions rich with copper deposits.
Positioning for the Global Energy Transition
The Papua New Guinea investment represents more than just portfolio diversification—it’s a calculated long-term strategy aligned with global decarbonization trends and rising demand for critical minerals. Copper, essential for electric vehicles, renewable energy infrastructure, and power transmission, is projected to see demand surge as the world transitions away from fossil fuels.
This strategic pivot comes at a time when traditional gold mining faces increasing cost pressures and geological challenges, while copper’s fundamental outlook remains strong due to its critical role in electrification and renewable energy technologies.
Balancing Global Expansion with Domestic Operations
While pursuing international copper opportunities, Motsepe confirmed that African Rainbow Minerals, the company he founded and which holds investments in Harmony Gold, will maintain its focus on South African operations. The diversified miner will continue investments in gold, platinum group metals, iron ore, and manganese within South Africa, alongside maintaining its copper stake in Canada.
This balanced approach demonstrates a strategic vision that leverages international growth opportunities while maintaining commitment to the company’s South African roots and existing commodity expertise.
This report is based on information originally published by BizCommunity. Full credit for the original reporting goes to the source publication.