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 (LoM) 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 and a width of 400 m. The foundation phase is designed to produce 800 000 t/y of HCC 64 Mid Vol at steady state.

The Central and West pits will extend the mine life to 28 years. 

Total saleable coal products over the LoM 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.

During the June 2026 quarter, the on-site workforce totalled 737 people, with host communities well represented in the labour complement and support services. Further employees were being onboarded into the processing plant. JCI Mining, the principal mining contractor, had 249 people on site.

Environmental and Process Technologies (Enprotec), the lead contractor for the coal plant, peaked at 450 people on site across 16 subcontractors, including 140 employees recruited from host communities.

Net Present Value/Internal Rate of Return
The updated LoM plan indicates a real, after-tax net present value of R6.8-billion at a 6% discount rate, or R4-billion at a 10% discount rate, and a real, after-tax internal rate of return of 37%. The average payback period remains 3.5 years from the start of construction.

Capital Expenditure
Peak funding is estimated at $96-million, or R1.8-billion. Construction capital, including a 10% contingency, is estimated at $90.8-million, or R1.709-billion. 

Planned Start/End Date
C3 commissioning of the coal handling and preparation plant (CHPP) was completed on May 22, 2026. C4 hot commissioning and plant start-up were under way at the end of June, with performance testing scheduled for early August 2026 and ramp-up to full capacity expected before the end of the September quarter.

Latest Developments
MC Mining reported that several operational-readiness milestones were achieved during the quarter ended June 30, 2026, while the project recorded no lost-time injuries.

Construction of the CHPP has been completed. C3 commissioning was completed on May 22, 2026, and C4 hot commissioning and start-up were progressing, with performance testing scheduled for early August.

Prestrip overburden mining in the opencast pit has been completed and coal exposed. Different seams have been mined and fed to the plant for commissioning, with about 101 000 t of coal mined by the end of June. JCI Mining had eight backhoe-configured excavators and 33 articulated dump trucks operating at the project.

The plant will process run-of-mine coal to produce HCC 64 Mid Vol as its primary product and 5 500 kcal thermal coal as its secondary product. Planning for an expansion beyond the foundation phase is continuing.

The new 14 km, 22 kV Paradise overhead transmission line was completed and commissioned during the quarter and will supply 7.5 MVA from the national grid through the nearby Paradise power station.

The eastern wellfield bulk-water system was installed and commissioned to provide process water to the plant. Commissioning of the remaining western wellfield system Is planned for the September 2026 quarter.

Product-logistics infrastructure, including two certified 80 t weighbridges, was commissioned during the quarter, making Makhado ready for product delivery to port. Logistics contractors were shortlisted and were preparing for trial runs to port during August.

Key Contracts, Suppliers and Consultants
JCI Mining (principal mining contractor); Environmental and Process Technologies/Enprotec (lead contractor for the coal plant); and EHL Engineering Group (Paradise overhead line, engineering, procurement and construction –turnkey basis).

Contact Details for Project Information
MC Mining South African office, tel +27 10 003 8000 or email adminza@mcmining.co.za.