JSE-listed MC Mining has been granted a mining right for its 74% owned Generaal coking and thermal coal project in the Limpopo province.
Generaal Project, together with the Chapudi and Mopane projects, comprise MC Mining’s longer-term Greater Soutpansberg Project (GSP) in the Soutpansberg Coalfield. The GSP is located within close proximity to the Musina-Makhado Special Economic Zone an area designated by government to focus on, amongst others, energy and metallurgical industries.
The company submitted mining right applications for the three GSP project areas to the Department of Mineral Resources and Energy (DMRE) in 2013 and following the Chapudi mining right in December 2018, the Generaal mining right is the second of the applications to be granted.
Significant earning potential
The Generaal Project contains over 407 million gross tonnes in situ of inferred coal resources and supports MC Mining’s strategy of being South Africa’s pre-eminent producer of hard coking coal, used in the steel manufacturing process and attracting significantly higher sales prices compared to thermal coal.
David Brown, MC Mining’s Chief Executive Officer commented: “The granting of the mining right is a further step in unlocking value from MC Mining’s significant coking and thermal coal assets, positioning the GSP to be a potential long-term coal supplier to industrial users both local and offshore, including the planned Musina-Makhado SEZ.
“The long-term development of the three GSP project areas is complementary to our flagship Makhado hard coking coal project, also in the Soutpansberg Coalfield. The company has made significant progress in advancing Makhado during the last 12 months and anticipates completing the Phase 1 capital raise process in the near-term in order to facilitate the commencement of construction in Q1 CY2020.
“The conclusion of domestic and export Makhado Phase 1 and Phase 2 off-take agreements reflects the market appetite for hard coking coal and the significant potential of projects located in this coalfield.”