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’s life-of-mine (LoM) plan incorporates the exploitation of all portions of the East, Central and West coal deposits that are mineable using surface mining methods. 

Run-of-mine (RoM) production will initially come from the East pit, with a strike length of 5.5 km, at a width of 400 m. Steady-state RoM production is planned at four-million tonnes a year, resulting in sales of 880 000 t/y of primary HCC product, over a 14-year pit life. 

The Central and West pits will extend the mine life to 28 years. 

Total saleable coal products over the LoM are estimated at 41-million tonnes. 

Initial HCC production is earmarked for the domestic steel industry, where Makhado coal will have a substantial logistics cost advantage over imports.

Adjacent to the Makhado project are the satellite Greater Soutpansberg projects that have all been granted mining right status. The projects also have steelmaking HCC potential, and are scheduled to be the focus of mine planning, once the Makhado project is commissioned.

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

During the March 2026 quarter, the on-site workforce peaked at 977 people, with host communities well represented in the labour complement and support services. JCI Mining, the principal mining contractor, had 249 people on site.

Environmental and Process Technologies (Enprotec), the lead contractor for the coal plant, peaked at 450 people on site across 16 subcontractors, including 140 employees recruited from host communities.

Net Present Value/Internal Rate of Return
The updated LoM plan indicates a real, after-tax net present value of R6.8-billion at a 6% discount rate, or R4-billion at a 10% discount rate, and a real, after-tax internal rate of return of 37%. The average payback period remains 3.5 years from the start of construction.

Capital Expenditure
Peak funding is estimated at $96-million, or R1.8-billion. Construction capital, including a 10% contingency, is estimated at $90.8-million, or R1.709-billion. 

Planned Start/End Date
The time to first production is estimated at 13 months.

Latest Developments
MC Mining has reported that more project development milestones were achieved in the quarter ended March 31, 2026. 

Hot commissioning activities and startup of the coal plant are scheduled for May 2026. 

Openpit mining operations are on track, with RoM delivery to the CHPP having started, coal faces exposed and RoM stockpiles being built ahead of commissioning. JCI is operating a fleet of eight backhoe-configured excavators, supported by 33 articulated dump trucks. More than 1.3-million bench cubic metres of overburden have been mined.

CHPP construction works are progressing well, with planned completion in the second quarter of 2026. 
The CHPP will process RoM coal to produce HCC 64 Mid Vol as the primary product and 5 500 kcal thermal coal as the secondary product.

Heavy rain during the March quarter caused severe flood damage to the temporary bridge, which has been taken out of use. The main access bridge over the Mutamba river has been opened to traffic, with work continuing on the approach roads.
The main power supply line to the project has progressed well. Installation of the MV substation and transformers has been completed. 

Key Contracts, Suppliers and Consultants
JCI Mining (principal mining contractor); Environmental and Process Technologies/Enprotec (lead contractor for the coal plant); and EHL Engineering Group (Paradise overhead line, engineering, procurement and construction –turnkey basis).

Contact Details for Project Information
MC Mining South African office, tel +27 10 003 8000 or email adminza@mcmining.co.za.