Wedoany.com Report on Feb 26th, Mining activity in Australia's Cobar Basin has persisted for over 150 years, encompassing several well-known mines. As the copper price surpasses a historic high of $13,000 per tonne, corporate activity in the region has significantly intensified, with major players deploying resources across this traditional copper district.
The CSA Mine, located in the northern part of the basin, began development in the early 20th century, with modern underground mining commencing in 1965. It is still operating at a depth of approximately 1.9 kilometres, with a copper grade close to 4%, and its resources are estimated to sustain production for over 12 years. The mine was previously held by Glencore, changed hands multiple times, and last year, South Africa's Harmony Gold acquired its owner, MAC Copper, for $1.7 billion.
This transaction triggered a chain reaction, with Aeris Resources (ASX:AIS) announcing a $214 million acquisition of Peel Mining (ASX:PEX) and its Mallee Bull and Wirlong deposits. Aeris produces approximately 25,000 tonnes of copper annually from its Tritton mine and operates a 1.8 million-tonne-per-year processing plant. This acquisition indicates that the race to consolidate the fragmented parts of the Cobar Basin has begun, as copper miners pursue scale.
Fergus Kiley, Managing Director of Mount Hope Mining (ASX:MHM), stated, "I think in this M&A cycle, the first domino has fallen." He added, "In any healthy mining ecosystem, large mines need to replenish resources as they deplete, which creates conditions for regional deals." The integration of Aeris and Peel is expected to deliver operational synergies, with Peel's high-grade South Cobar copper project able to advance rapidly by leveraging Tritton's existing facilities.
The Cobar Basin currently has six active mines and seven processing plants. Five small companies hold nine development-stage assets, while another 11 exploration companies are actively seeking new discoveries. Besides CSA, the Endeavor silver-zinc mine was restarted last year by Polymetals Resources (ASX:POL). The mine operated for nearly four decades before its closure in 2019 and now boasts reserves of 44 million ounces of silver and 1.3 million tonnes of zinc. Aurelia Metals (ASX:AMI) produces multiple metals from its Peak operations and is reviewing plans to expand its plant.
Since mid-2023, Aeris, Peel, Polymetals, and Manuka Resources (ASX:MKR) have collectively secured over $150 million in funding to advance their projects. Manuka plans to restart the Wonawinta silver mine later this year. Mount Hope holds 417 square kilometres of tenements in the southern part of the basin, considered an underexplored frontier. Kiley noted, "The southern Cobar Basin has the same geological potential as the north, potentially hosting world-class deposits." The company's Mt Solitary gold exploration area yielded significant discoveries in 2025 drilling, such as a 19-metre intercept grading 4.5 g/t gold, including a 1-metre interval grading 50 g/t gold.
Mount Hope has identified a 7.5-kilometre mineralised trend with characteristics similar to the Peak gold mine complex in the north. Peak has produced approximately 2.5 million ounces of gold, while Mount Hope's MS2 corridor mineralisation extends to 300 metres below the surface and remains open at depth. Kiley explained, "We view Mount Solitary as similar to New Occidental before its discovery; these systems can extend over a kilometre, which is typical of deposit types in the Cobar Basin."
The Cobar Basin's infrastructure advantages, including rail, roads, and a natural gas pipeline, could accelerate the work of exploration companies and expedite project development. Kiley concluded, "It's one of the best places globally to look for resources, with a supportive regulatory environment for business, and infrastructure that helps quickly bring discoveries into operation." As the consolidation wave continues, the positioning of ASX-listed exploration companies in the Cobar Basin is expected to strengthen further.
