Makhado project – significant increases in mine life and coal reserves

MC Mining Limited (MC Mining or the Company) has announced the results of the updated Life of Mine (LOM) plan and Coal Reserve estimate for its fully-licensed and shovel-ready Makhado steelmaking hard coking coal project (Makhado Project, Makhado or the Project).

Highlights:

• The updated LOM plan2 demonstrates a significantly increased mine life (+27%), at a higher annual mine production rate (+25%) and results in robust project financial returns, whilst using updated conservative cost, macro-economic and coal price assumptions;
• Proved and Probable Coal Reserves estimates, reported in accordance to JORC Code guidelines, have substantially increased (+53%, from 69 to 106 million tonnes (Mt)) as a result of the detailed mine designs completed for the East Pit deposit in preparation for mine start; and
• Steady progress has been made with critical early works activities in line with the Project’s Implementation Plan.

The LOM plan builds on the recently completed five-year Implementation Plan that envisaged initially mining the East Pit. The plan incorporates the exploitation of all portions of the East, Central and West coal deposits that are mineable by surface mining methods. The Coal Reserve estimate is derived from this updated LOM plan that applies updated costs, macro- economic and coal price assumptions. Chief Executive Officer, Mr. Godfrey Gomwe, commented: “The Makhado Project continues to progress on schedule in preparation for first coal production to no later than 18 months after construction starts. We are pleased to see a substantial increase in our Coal Reserves and consequently mine life at a much-improved annual production rate for saleable coal products. This bodes well for moving operations down the cost curve whilst aiming to take advantage of the near-term steelmaking HCC coal price boons. We continue to focus on advancing early works activities whilst funding activities are concluded in H2 CY2023, so that mine commissioning meets scheduled production timelines. We are also excited to have strong contenders to be our partner mining contractors and partner coal beneficiation plant operating contractors in the managed tender processes currently under way and due for completion during the third quarter of 2023.”