Indonesia-based MACH Metals Australia (NYSE:MNR) is set to acquire Rex Minerals (ASX: RXM) for A$393 million ($265 million). Rex Minerals currently owns Australia’s largest shovel-ready copper project; this acquisition highlights the significant interest in copper resources aligned with the growing demand attributed to clean technology and expanded electric grids.

MACH Metals Australia, which is a subsidiary of the prominent Salim Group, has been a significant stakeholder in Rex, holding a 15.8% share. The acquisition will increase its shares at the price of A$0.47 each, notably a 98% premium over Rex’s 90-day average trading price.

Following the news of the takeover, Rex Minerals’ shares soared, closing 62% higher over the previous two trading days. This jump reflects the market’s optimistic response to the acquisition. Prior to the acquisition announcement, Rex had a market capitalization of A$331.84 million at the close on Tuesday.

The Rex board has expressed unanimous support for the deal, recommending that shareholders vote in favour. This recommendation highlights the opportunity for shareholders to capitalize on a significant return, the highest in a decade for the company’s stocks.

Rex’s prestigious Hillside copper-gold project, located in South Australia, stands out with a resource estimate from 2022 that indicates 1.9 million tonnes of copper, along with 1.5 million ounces of gold. This acquisition comes around the time when BHP made a noteworthy bid to acquire Anglo American, also indicating a strategic shift toward securing copper mines.


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The Hillside project, with a proposed 13-year mine life, requires significant initial investment, as per the 2022 feasibility study, with a pre-production capital outlay earmarked at A$854 million.

The shift to acquiring assets such as the Hillside project aligns with MACH Metals’ strategy to diversify its asset base and tap into the burgeoning market for copper, spurred by the ongoing energy transition.

Completion of the acquisition is contingent upon approvals from the Australian Foreign Investment Review Board and the affirmative vote of Rex shareholders. Should all proceedings go as planned, the deal is expected to close by late October.

The purchase not only demonstrates MACH Metals’ intention to solidify its stake in the copper market but also signals the broader industry’s turn towards materials essential for a future of sustainable energy and technical innovation. The acquisition could have reverberating impacts, setting a precedent for future mining and resource investments in the Asia-Pacific region and beyond.

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