Name of the Project
Makhado steelmaking hard coking coal (HCC) project.

Location
Limpopo, South Africa.

Project Owner/s
MC Mining has 67.3% interest in the Makhado project through its subsidiary Baobab Mining & Exploration, with the Industrial Development Corporation of South Africa owning 6.7%, seven local communities owning 20% and the remaining 6% held by a black economic-empowerment industrialist.

Project Description
Makhado is a fully licensed and shovel-ready steelmaking HCC project. Once developed, it is expected to be the only significant steelmaking HCC mine in the country.

MC Mining published an updated (LoM) plan in June 2023. The plan incorporates the exploitation of all portions of the East, Central and West coal deposits that are mineable using surface mining methods. 

The updated LoM plan resulted in a 27% increase in the Makhado LoM from 22 years to 28 years. The targeted yearly mining rate also increased from 3.2-million tonnes a year to 4-million tonnes a year as did the capacity of the coal handling preparation plant, which increased by 100%, from two-million tonnes a year to four-million tonnes a year.

Total saleable coal products have increased from 26-million ton 41-million tonnes.

Potential Job Creation
The project is expected to create about 650 permanent employment positions.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 6% discount rate, of R6.8-billion and internal rate of return 37%, with a payback of about 3.5 years.

Capital Expenditure
Peak funding is estimated at R1.8-billion.

Planned Start/End Date
The time to first production is estimated at 18 months.

Latest Developments
Funding and development activities for Makhado are ongoing, following the successful off-market offer process.

Key Contracts, Suppliers and Consultants
Minxcon (BFS and potential alternative development scenarios for Makhado); and Erudite (detailed planning for a full process design for Makhado).

Contact Details for Project Information
MC Mining, tel +27 10 003 8000 or email admin@mcmining.com.