Mining Intelligence and News
South Africa

Makhado Project

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Categories

Summary

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

The Makhado colliery will be South Africa’s largest hard coking coal (HCC) producer. The Greater Soutpansberg Projects are a collection of mineral tenements held under Mining Rights and located near the Makhado Project.

The phased development of the Makhado Project will ensure continued scalability. Phase 1 will see the mining of the west pit with the coal processed at the existing Vele Colliery processing plant, which will be modified accordingly.

During FY2025, significant construction work was carried out on site, including the erection of power supply lines, construction of key infrastructure, the coal handling and processing plant (CHPP) and the commencement of mining activities (preparation of the box-cut).

Open pit mining of the boxcut commenced during the fist quarter FY2026, with the first in-pit blast being performed in early October 2025.

Owners

SourceSource
CompanyInterestOwnership
Industrial Development Corporation 6.7 % Indirect
MC Mining Ltd. 67 % 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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Heavy Mobile Equipment

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Commodity Production

CommodityUnitsAvg. AnnualLOM
Coal (thermal) Mt 0.6 *19 *
Coal (hard coking) Mt 0.8 *22 *
Coal (metallurgical & thermal) Mt 41 *
All production numbers are expressed as clean coal. * According to 2023 study.

Operational metrics

Metrics
Annual ore mining rate  ....  Subscribe
Annual processing capacity  ....  Subscribe
Stripping 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

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Nov 5, 2025
....................... Subscription required ....................... Subscription required Subscription required Nov 5, 2025

Workforce

Total WorkforceYear
...... Subscription required 2024

Aerial view:

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