MC Mining Launches Open Pit Operations at Makhado, Targeting Steel Industry Boost
MC Mining has officially begun open pit mining at its flagship Makhado hard coking coal project in South Africa, advancing steadily towards full production by year-end 2025.
- Open pit mining commenced at Makhado steelmaking coal project
- Coal Handling and Preparation Plant construction on track for late 2025 commissioning
- Initial production from East Pit aiming for 4 million tonnes run of mine annually
- Projected 880,000 tonnes of hard coking coal sales per year over 14 years
- Strategic focus on supplying South Africa’s domestic steel industry with cost advantages
A Milestone for MC Mining
MC Mining Limited has marked a significant operational milestone with the commencement of open pit mining at its Makhado steelmaking hard coking coal project, located in South Africa’s Limpopo Province. This development signals a critical step forward in the company’s ambition to become a leading supplier of hard coking coal (HCC) to the domestic steel industry.
The project’s initial mining activities are focused on the East Pit, which spans a strike length of 5.5 kilometres and a width of 400 metres. The company plans to reach a steady-state run of mine production of 4 million tonnes per annum, translating into approximately 880,000 tonnes of primary HCC product annually. This output is expected to sustain a 14-year mine life, with further expansion potential through the Central and West Pits extending operations to nearly three decades.
Infrastructure and Safety on Track
Supporting infrastructure is progressing well, with the Coal Handling and Preparation Plant under construction and on schedule for commissioning by the end of 2025. The principal mining contractor, JCI Mining, has mobilised a sizeable fleet and workforce, ensuring operational momentum. Notably, the project boasts an excellent health and safety record, with zero lost time injuries since mining activities began in November 2024.
Key infrastructure elements such as bulk power, water supply, access roads, and environmental containment systems are advancing in line with the planned timeline. This coordinated progress underscores MC Mining’s commitment to regulatory compliance and disciplined capital expenditure.
Strategic Importance for South Africa’s Steel Sector
MC Mining’s Interim Managing Director and CEO, Christine He, highlighted the broader significance of the Makhado project. By providing competitively priced hard coking coal, the project aims to reduce input costs for South Africa’s steel industry, a sector critical to the country’s ongoing industrialisation efforts. The logistics cost advantage of locally sourced coal over imports is expected to enhance the competitiveness of domestic steel producers in global markets.
Moreover, the project is positioned to deliver tangible social and economic benefits to the Limpopo region, aligning with national development priorities. The company’s portfolio, including the nearby Greater Soutpansberg Projects, reinforces its role as a key player in South Africa’s metallurgical coal landscape.
Looking Ahead
As MC Mining advances towards full-scale production, market watchers will be keen to monitor commissioning milestones and initial output volumes. The successful ramp-up at Makhado could solidify the company’s standing and contribute meaningfully to South Africa’s steelmaking ambitions.
Bottom Line?
MC Mining’s progress at Makhado sets the stage for a new era in South African steelmaking coal supply, but execution risks remain as commissioning approaches.
Questions in the middle?
- How smoothly will the Coal Handling and Preparation Plant commissioning proceed by year-end?
- What impact will Makhado’s production have on domestic steel prices and import volumes?
- How will MC Mining manage operational risks during the ramp-up phase to steady-state production?