Mining Intelligence and News
South Africa

Makhado Project

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Categories

Overview

Mine TypeOpen Pit
StagePermitting
Commodities
  • Coal (metallurgical)
  • Coal (thermal)
  • Coal (hard coking)
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotMakhado Project is fully-licensed and shovel-ready coal mine project.

MC Mining’s flagship Makhado steelmaking Hard Coking Coal (HCC) project has secured the regulatory approvals and surface rights over the mining and processing areas. MC Mining is heavily invested in the Makhado Project.

Construction period of Makhado Project will last 18 months.

Owners

SourceSource
CompanyInterestOwnership
MC Mining Ltd. 67.3 % Indirect
MC Mining's subsidiary, Baobab Mining & Exploration Pty Ltd, is the owner of the Makhado Project.

Contractors

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Deposit type

  • Sedimentary

Summary:

Coal forms in sedimentary environments due to the accumulation, compaction and induration of variously altered plant matter. Coal is a readily combustible sedimentary rock containing more than 50% by mass and more than 70% by volume, carbonaceous material. Coal typically occurs as seams and the presence thereof is determined by the palaeo-depositional environment occurring at the time of deposition and subsequent preservation mechanisms. Formation of coal and the resultant quality of coal is determined by the depositional setting and pressure and temperature conditions post-deposition and postcompaction.

Dimensions
The project extends approximately 17km along strike with a dip of 12° to the north. A limit of approximately 30m of oxidation has been used to limit the upper boundary near the outcrop. The open cast depth has been theoretically defined as 200m below topography and this is the limit of the resource.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityUnitsAvg. AnnualLOM
Coal (thermal) Mt 0.619
Coal (hard coking) Mt 0.822
Coal (metallurgical & thermal) Mt 41
All production numbers are expressed as clean coal.

Operational metrics

Metrics
Annual mining rate  ....  Subscribe
Annual processing capacity  ....  Subscribe
Stripping / waste ratio  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
* According to 2023 study.

Production Costs

CommodityUnitsAverage
C3 fully allocated costs Coal (metallurgical & thermal) USD  ....  Subscribe
Assumed price Coal (hard coking) USD  ....  Subscribe
Assumed price Coal (thermal) USD  ....  Subscribe
* According to 2023 study / presentation.

Project Costs

MetricsUnitsLOM Total
Pre-Production capital costs $M USD  ......  Subscribe
Expansion CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
Operating margin, %  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax NPV @ 10% $M ZAR  ......  Subscribe
After-tax NPV @ 6% $M ZAR  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jan 13, 2025

Total WorkforceYear
...... Subscription required 2024

Aerial view:

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