MC Mining Limited has announced that the South African Department of Mineral Resources & Energy (“DMRE”) has granted the remaining mining right for its 74% owned Mopane coking and thermal coal project in the Limpopo province.
The Mopane Project, together with the Chapudi and Generaal Projects, comprise the Company’s longer-term Greater Soutpansberg Project (“GSP”) in the Soutpansberg Coalfield. The GSP is located within close proximity to the Musina-Makhado Special Economic Zone, an area designated by government to focus on, amongst others, energy and metallurgical industries.
The Company submitted mining right applications for the three GSP project areas to the DMRE during 2013 and the Chapudi Project mining right was granted in December 2018, followed by the Generaal Project mining right in November 2019.
The Mopane Project contains 230 million gross tonnes in situ of measured and indicated coal resources and supports MC Mining’s strategy of being South Africa’s pre-eminent producer of hard coking coal which is used in the steel manufacturing process and attracts significantly higher sales prices compared to thermal coal.