Harmony Gold (NYSE:HMY) has approved the construction of its Eva copper project in Australia, committing $1.6 billion to a development plan that will begin in the third quarter of 2026 and extend over a three-year build period. The company expects the new mine to begin production in the second half of 2028, marking a major expansion of its presence in the copper sector.

The decision follows two years of study and planning since Harmony acquired Eva in 2022 from Copper Mountain Mining for approximately $230 million. During that time, the company refined the project’s design, updated production estimates, and evaluated the operational role Eva would play in its long-term strategy.

According to the updated plan, the Eva mine is expected to produce 65,000 tonnes of copper per year during its first five years of operation, followed by an average of 60,000 tonnes annually over a projected 15-year mine life. Alongside copper, the operation is also forecast to yield 19,000 ounces of gold per year. The company stated that the operation would carry an all-in sustaining cost of $2.50 per pound of copper.

Harmony chief executive Beyers Nel said the company views the long-term outlook for both copper and gold as supportive of a diversified production profile. He noted that the combination of copper and gold at Eva should help support free cash flow generation while reducing broader business risk. Nel also said that both Eva and the company’s recent acquisition of MAC Copper would provide Harmony with a wider base of metals exposure, which he described as strengthening cash flow through various commodity cycles.

Harmony completed the acquisition of MAC Copper earlier this year in a $1 billion transaction that brought the CSA copper mine in New South Wales into its portfolio. The CSA mine produces about 41,000 tonnes of copper annually. Together, the MAC Copper acquisition and the development of the Eva project are central to Harmony’s plan to grow its copper output to around 100,000 tonnes per year.

The company said that this targeted production level is expected to be reached within five years once Eva is operational and integrated with the CSA mine’s contribution. Funding for Eva’s construction is planned to come from internal cash flow and debt, with Harmony stating that it intends to maintain its existing dividend policy during the development period.

While the Eva project represents a significant capital commitment, Harmony emphasized that the combination of its copper assets aligns with its strategy to expand beyond gold and position itself within metals critical to long-term demand trends. The company has not indicated any adjustments to its wider operational footprint but noted that growth in copper output is now a central component of its near-term and medium-term planning.