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 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 life-of-mine 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.

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 9% discount rate, of R1.18-billion and internal rate of return of 16%, with a payback of about 3.5 years.

Capital Expenditure
Peak funding is estimated at R1.5-billion.

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

Latest Developments
MC Mining has reported that all development activities are progressing well and on target to achieve first coal by the first quarter of 2026.

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

Enprotec has completed civil works and transitioned to erecting structural steel, installing mechanical equipment and platework, while JCI Mining is on site and on schedule with the boxcut developments.

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.