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.

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.

JCI Mining, the principal mining contractor, had 167 people on site as at September 30, 2025. Environmental and Process Technologies (Enprotec), the lead contractors for the construction of the CHPP, now manage 450 persons on site across 16 different subcontractors, with 140 of these employees having been recruited from the host communities, MC Mining reported at the end of October 2025.

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
Development progressed well in the quarter ended September 30, 2025, with key milestones achieved, despite some construction delays.

Commissioning activities are expected to start by December 2025, the principal mining contractor has started with the openpit mining of the boxcut, civil foundational works for the CHPP are largely complete and significant progress is being made towards the commissioning of the 14 km overhead power transmission line.

The construction of a permanent bridge crossing the Mutamba river to provide access to the mine site is continuing, with overall completion expected in December 2025. A temporary access bridge, completed in the third quarter of the 2025 financial year, is being used to provide site access.

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 (CHPP construction).

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