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 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 400m. 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. 

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

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
MC Mining has started openpit mining.

The associated CHPP was under construction and on schedule for commissioning by year-end, the company said on August 15.

Rapid progress towards coal production is being made on the back of a clean health and safety record, with zero lost-time injuries since work started in November 2024, and full regulatory compliance and progress in line with planned capital expenditure.

The principal mining contractor JCI Mining is now established on site and on schedule with the boxcut. The contractor’s mining fleet comprises five loading excavators and 19 hauling articulated dump trucks, along with a workforce complement that has been augmented to 122 people.

Enprotec, which is building the coal plant on a build, own, operate and transfer contract basis, has completed civil works and has transitioned to erecting structural steel, installing mechanical equipment and platework.

Key mine infrastructure, including bulk power and water supply, a mine access bridge and roads, as well as dirty water containment, are on schedule and in line with the scheduled start of coal production.

Key Contracts, Suppliers and Consultants
Minxcon (bankable feasibility study and potential alternative development scenarios for Makhado); Erudite (detailed planning for a full process design for Makhado); JCI Mining (principal mining contractor); and Enprotec (coal plant construction).

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