South Africa’s South African Copper Corporation will acquire the Black Copper Marans (BCM) and the South African Mining Corporation (SAMS) from the Australian state of Victoria for an undisclosed sum.
South Africa is the second largest copper producer in the world.
BCM and SAMS will retain their copper output and mines.
The Australian state government will also receive a share of the proceeds of the transaction.
A consortium of Canadian mining companies, including the BCM Group and South African miner Santos Resources, has also expressed interest in the companies.
“The acquisition will enable the BCMs to continue to build a successful copper mining business in South Africa, and further diversify its portfolio into new markets,” SABC president and CEO Michael Crampton said in a statement.
BCMs production capacity has increased by 70% since 2011, and it is the world’s second largest producer of copper, behind China.
The company has said it will keep the production level unchanged.
South African Premier Pravin Gordhan announced the deal in a speech at the South Africa Council of Trade Unions (SATU) in Johannesburg.
“This is an important transaction, and I am confident it will provide us with a strong foundation for our continued success in the South Asian market,” Gordhan said.
“We welcome the opportunity to grow the BCm and SAMs operations in South East Asia.”
South Africa has the world largest copper deposits, but has struggled to increase production amid a glut in global demand.
BCMS was the only company in the region to produce at least 1,000 metric tonnes of copper in 2016, according to the Australian National University.