MC Mining has signed a Heads of Agreements with Chinese construction enterprise, China Railway International Group.
China Railway Group (CRIG) is the international focused division of China Railway Group, a leading global construction company listed in Shanghai and Hong Kong.
Under the terms of the Heads of Agreements, MC Mining and CRIG have agreed to negotiate a package that comprises the engineering, procurement and construction (EPC), for the Makhado hard coking and thermal coal project, coal handling and processing plant, financing for 85% of the EPC costs and contract mining operations, conditional upon the finalisation of terms and conditions by June 2019.
These include completion of the Makhado front end engineering and the design study and the agreement on the EPC contract price by both parties, as well as appropriate funding provided on acceptable terms.
The development of the Makhado project is expected to facilitate economic growth in the Limpopo province and MC Mining will keep the market appraised on further progress with regards to the ongoing discussions with CRIG.
Off-take discussions for hard coking and export thermal coal production from Makhado are ongoing with various parties.
"This is an extremely positive move as it represents international recognition for the world class nature of the Makhado project," comments MC Mining CEO, David Brown.