MC Mining, an Australia-incorporated company, has begun open pit mining at its Makhado steelmaking hard coking coal (HCC) project in South Africa’s Limpopo Province.
The development, managed by principal contractor JCI Mining, involves a workforce of 122 people. It features a mining fleet with five loading excavators and 19 dump trucks.
Enprotec is responsible for constructing the coal handling and preparation plant under a build-own-operate-transfer agreement, currently advancing from civil works to structural developments.
The project’s infrastructure setup, covering power and water supply as well as road access, aligns with the scheduled start of coal production.
Initial production will originate from the East Pit, which spans 5.5km in length and 400m in width.
The Makhado project is expected to reach a steady run-of-mine production of four million tonnes annually, translating into annual sales of 880,000 tonnes of primary hard coking coal over a 14-year duration.
The Central and West Pits are set to prolong the mine’s life to 28 years. Domestic steel producers will be the initial recipients of the hard coking coal, with logistical benefits anticipated over imported alternatives.
MC Mining interim managing director and CEO Christine He said: “South Africa’s continued industrialisation relies on ventures like Makhado that look to support the country’s Steel and Metal Fabrication Master Plan by quantum input cost reductions. Cheaper hard coking coal, along with iron ore, rail and electricity, are the main levers for producing affordable steel to compete with the increasingly competitive global market.
“In bringing Makhado production online, along with the equally good Greater Soutpansberg Projects nearby, our shareholders stand to benefit significantly in being the pre-eminent HCC producer in the country, whilst effecting tangible social upliftment in the wider region and supporting the South African economy.”
Ownership of the Makhado project is 95% under MC Mining, though this will reduce to 69% following a Broad-Based Black Economic Empowerment transaction. This transaction will allocate 20% to the Makhado Colliery Community Development Trust and 6% to Yoright Investments, leaving the Industrial Development Corporation with a 5% stake.
Situated approximately 65km southwest of Musina and near other projects like Vele Colliery, Makhado is the flagship asset in MC Mining’s portfolio.
The first phase of the Makhado project involves exploiting the West Pit, with coal processed at Vele Colliery’s plant after necessary modifications. This phased development approach is set to enhance the project’s scalability.
