Troubled copper miner goes green with R60 million deal
Copper 360 has agreed to buy 100% of Mulilo Springbok Wind Power as part of its goal to achieve energy security despite the miner’s financial difficulties.
The miner informed shareholders on Wednesday, 22 January, that it concluded an agreement with Mulilo Renewable Project Developments to acquire 100% of Mulilo Springbok Wind Power (MSWP).
MSWP owns a project to establish a 55 MW wind energy generation facility in the Springbok area of the Northern Cape.
The project is at an advanced stage with regard to feasibility studies, technical documentation and engineering plans.
The purchase consideration comprises an initial cash payment of R5 million with deferred cash payments of R1 million per MW of installed capacity, payable as capacity is installed.
Copper 360 explained that an attractive feature of the project is its fully authorised environmental impact assessments, other relevant clearances, permits, and land leases that are already in place.
“Studies indicate that the intended location of the generation facility is highly favourable in terms of wind profiles,” the company said.
There are no conditions precedent, and the acquisition is expected to be completed during the first week of February 2025.
Copper 360 explained that its strategic objective is to achieve energy security as it grows its core copper-producing business, using renewable energy in an environmentally responsible manner.
The acquisition will provide Copper 360 with a strong platform to generate renewable power to meet the increasing energy needs of the copper-producing business in a cost-effective manner.
“To this end, Copper 360 has commenced investigating a wider renewable energy supply strategy of which wind energy generation will be an important component,” he said.
This investigation will include assessing whether Copper 360 should exercise its right to participate in the energy supply business.
Alternatively, the company will also consider whether to outsource energy production to a greater or complete extent.
“I am thrilled about the acquisition of the MSWP wind energy project, which will position us at the forefront of the ‘Green Economy’ of which, as a copper producer, we are an integral part,” said Copper 360 CEO Shirley Hayes.
“The pursuit of energy security for Copper 360’s growing business in the form of reliable and responsible renewable power generation is a key strategic objective.”
“The acquisition aligns with Copper 360’s objective to grow through the development of its cluster mining model whilst reducing our carbon footprint in our quest for net-zero targets.”
“We believe that there are not only strategic and environmental benefits but, as importantly, also energy cost benefits that Copper 360 will be able to achieve.”

Copper 360’s troubles
This is a significant acquisition for the copper miner, which is struggling financially.
In its unaudited interim results for the six months ended 31 August 2024, Copper 360 reported a significant deterioration in its profitability, showing that the business is not sustainable in its current form.
It reported a gross loss of R15.7 million, which means the group could not sell its copper for more than it cost them to produce.
In addition, Copper 360 generated a net loss of R78.1 million, representing 111% of its total revenue for the period.
The group increased its copper sales by 263%. However, this was from a very low base of only 212 tons in the previous period.
The group reported producing only 526 tonnes of copper for the half-year period ending 31 August 2024.
The reported 526 tonnes of copper produced is significantly lower than the targets Copper 360 shared with investors.
Copper 360 said in its pre-listing statement that it would produce 480 tonnes of copper per month from July 2023, 100 tons from its cathodes, and 380 tonnes in concentrate.
The company then reported that starting in November 2023, its combined cathodes and concentrate plants would produce around 700 tonnes of copper metal per month.
This never happened. In February 2024, Copper 360 reported that it produced a mere 313 tonnes of copper for the entire year.
This means that Copper 360 only produced 26 tonnes of copper per month, a far cry from the 700 tonnes per month figure it shared with investors.
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