Makhado Project is ongoing in preparation for procurement
The detailed design of the coal handling and processing plant (CHPP) and related infrastructure for the Makhado Project is ongoing in preparation for procurement. The critical early works activities to ensure that the site is secure, as well as construction of water infrastructure for the CHPP continue and will be completed with available cash resources. The Company continues to progress the managed tender processes to select the mining contractor as well as the operating and maintenance contractors for the Makhado CHPP. Relevant appointments are anticipated to be confirmed in Q1 CY2024.
The Makhado Project remains a significant strategic asset for the Company that has the potential to take the Company’s production profile to in excess of 800,000 tonnes per annum of steelmaking hard coking coal (HCC) and cement MC Mining as South Africa’s preeminent HCC producer.
The Company continues to progress a number of funding initiatives to bring Makhado into production which it now expects to be completed in H1 CY2024, with the 18-month construction period commencing soon thereafter. Management and the Company’s board are focused on maximising shareholder returns with respect to these funding initiatives and will potentially include, amongst others:
– Build, own, operate, transfer (BOOT);
– Senior debt and composite debt/equity instruments;
– Coal prepayments; and
– Engineering, procurement and construction (EPC) contracts.
The Company is also assessing various scenarios for the Makhado Project to facilitate an accelerated start of coal production in H2 CY2024 and anticipates making further announcements in due course. Makhado Project (67% owned) ‘ Resource size: 757.54 million tonnes (Mt) Gross Tonnes in Situ (GTIS)
