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 249 people on site at the end of December 2025.
Environmental and Process Technologies, the lead contractor, manages a workforce of about 450 people across 16 subcontractors, including 140 employees recruited from host communities.

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. According to MC Mining’s results for the quarter ended December 31, 2025, project expenditure remains within budgeted estimates.

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

Latest Developments
The project continues to make solid progress, with several key development milestones achieved during the quarter ended December 31, 2025. 

Hot commissioning of the coal processing plant is expected to start in March 2026, despite delays caused by adverse weather, difficulties in sourcing suitable construction materials and the time required to secure all the necessary approvals for the construction of the 14 km power transmission line. 

Openpit mining operations are advancing steadily, with overburden removal progressing in line with schedules to support RoM coal delivery for the startup of the coal handling and preparation plant (CHPP). JCI is operating a fleet of eight backhoe-configured excavators supported by 33 articulated dump trucks, with a further four trucks scheduled for mobilisation in the coming quarter. To date, more than 1.3-million bench cubic metres of overburden have been mined.

Construction of the CHPP is progressing well, with completion targeted for the first quarter of 2026. Civil foundation works are largely complete, and activities have shifted towards structural steel, mechanical installation and equipment placement. The plant will process RoM coal to produce a primary hard coking coal product and a secondary thermal coal product with a calorific value of 5 500 kcal/kg. Planning for future expansion is continuing in parallel with commissioning preparations. 

The permanent access bridge over the Mutamba river has been commissioned and is now operational, with current efforts focused on upgrading the approach roads to improve site access. Progress is also being made on the construction of the main power supply infrastructure. The delivery of transformers to site represents a significant milestone in this workstream.

The Paradise overhead line, a 14 km, 22 kV bulk transmission line, will supply 7.5 MVA of power from the national grid through the nearby Paradise power station. This component is being implemented by the EHL Engineering Group under an engineering procurement and construction turnkey contract.

Construction activities and operational readiness programmes are continuing.

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); Environmental and Process Technologies (lead contractor); EHL Engineering Group (overhead power line); and Enprotec (CHPP construction).

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