Name of the Project
Makhado steelmaking hard coking coal (HCC) project.

Location
Limpopo, South Africa.

Project Owner/s
ASX- and JSE-listed coal company MC Mining has a 67.3% interest in the Makhado project through its subsidiary Baobab Mining & Exploration, with the Industrial Development Corporation of South Africa owning 6.7%, seven local communities owning 20% and the remaining 6% held by a black economic-empowerment industrialist.

Project Description
Makhado is a fully licensed steelmaking HCC project that has entered commissioning. Once developed, it is expected to be the only significant steelmaking HCC mine in the country.

MC Mining’s life-of-mine (LoM) plan incorporates the exploitation of all portions of the East, Central and West coal deposits that are mineable using surface mining methods.

Run-of-mine (RoM) production will initially come from the East pit, with a strike length of 5.5 km and a width of 400 m. The foundation phase is designed to produce about 800 000 t/y of HCC 64 mid-vol at steady state.

The Central and West pits will extend the mine life to about 31 years.

Total saleable coal products over the LoM are estimated at 34.1-million tonnes.

Initial HCC production is earmarked for the domestic steel industry, where Makhado coal will have a substantial logistics cost advantage over imports.

Adjacent to the Makhado project are the satellite Greater Soutpansberg projects that have all been granted mining right status. The projects also have steelmaking HCC potential, and are being assessed and prioritised to supplement Makhado.

Potential Job Creation
The project is expected to create about 650 permanent employment positions.

The on-site workforce numbered 737 during the September 2026 quarter.

Net Present Value/Internal Rate of Return
The previously reported LoM plan indicated a real, after-tax net present value of R6.8-billion at a 6% discount rate, or R4-billion at a 10% discount rate, and a real, after-tax internal rate of return of 37%. The average payback period was 3.5 years from the start of construction.

Capital Expenditure
Project capital expenditure is estimated at $83.5-million, or R1.5-billion.

Planned Start/End Date
C3 commissioning of the coal handling and preparation plant (CHPP) was completed on May 22, 2026. HCC and thermal coal were produced during the quarter ended September 30, 2026, although ramp-up remained incomplete.

Latest Developments
MC Mining’s has reported that all operations have been temporarily halted pending funding arrangements. Sales contracts cover about 46 000 t of finished coal at the mine and port.

MC Mining notes in its quarterly results for the period ending September 30, 2026, that the CHPP demonstrated washing capacity of about 7 600 t/d and produced HCC at an estimated 10% ash during commissioning. Performance testing, optimisation and infrastructure completion remain outstanding.

The September 2026 financial results have disclosed a material uncertainty over MC Mining’s ability to continue as a going concern. The company’s forecasts depend on further funding, continued supplier and creditor support, and successful commissioning and ramp-up of Makhado.

Key Contracts, Suppliers and Consultants
JCI Mining (principal mining contractor); Environmental and Process Technologies/Enprotec (lead contractor for the coal plant); and EHL Engineering Group (Paradise overhead line, engineering, procurement and construction –turnkey basis).

Contact Details for Project Information
MC Mining South African office, tel +27 10 003 8000 or email adminza@mcmining.co.za.