The Department of Mineral Resources (DMR) has granted MC Mining a mining right for its 74%-owned Chapudi coking and thermal coal project, in Limpopo.

The Chapudi project, together with the Mopane and Generaal projects, comprise the company’s longer-term Greater Soutpansberg Project (GSP), in the Soutpansberg coalfield.

The GSP is in close proximity to the Musina-Makhado Special Economic Zone (SEZ), an area designated by government to focus on energy and metallurgical processing, besides others.

The Chapudi mining right is the first of the three GSP mining right applications to be granted. These applications were submitted to the DMR in 2013.

The Chapudi project boasts more than 6.3-billion gross tonnes of in situ inferred coal resources and supports MC Mining’s strategy to become a substantial producer of hard coking coal, which is used in the steel manufacturing process and typically attracts significantly higher sales prices than thermal coal.

“The granting of the mining right for the Chapudi project is a key step in unlocking value from MC Mining’s significant coking and thermal coal assets and positions the GSP as a potential long-term coal supplier to the planned Musina-Makhado SEZ,” says MC Mining CEO David Brown.

The Mopane and Generaal projects’ mining right applications are at an advanced stage, with the company expecting these to be granted in the near future, following which it will start with the various studies required for the outstanding water and environmental regulatory approvals, Brown explains.

“We continue to advance our flagship Makhado hard coking and thermal coal project and the November 2018 agreement to acquire the Lukin and Salaita properties facilitates the completion of geotechnical and related infrastructure studies for the proposed colliery.”

Recent Makhado project milestones include the conclusion of a hard coking coal offtake agreement, while negotiations for the remaining hard coking coal, as well as the thermal coal and funding initiatives, are progressing.