MC Mining Limited Mopane Mining Right Granted (0281O)
February 04 2021 - 7:00AM
UK Regulatory
TIDMMCM
RNS Number : 0281O
MC Mining Limited
04 February 2021
ANNOUNCEMENT 4 February 2021
MOPANE MINING RIGHT GRANTED
MC Mining Limited ("MC Mining" or the "Company") is pleased to
announce 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 ("Mopane
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
("SEZ"), 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 [1] 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.
Brenda Berlin, MC Mining's Acting Chief Executive Officer
commented:
"The granting of the Mopane Project mining right is a further
step in unlocking value from MC Mining's significant coking coal
assets, positioning the GSP to be a potential long-term coking coal
supplier to industrial users, both local and offshore, including
the planned Musina-Makhado SEZ. The domestic and export Makhado
Phase 1 and Phase 2 hard coking coal off-take agreements already in
place reflect the market's appetite for metallurgical coal.
The long-term development of the three GSP project areas is
complementary to our flagship Makhado hard coking coal project,
which is also in the Soutpansberg Coalfield. The Company has made
significant progress in advancing Makhado and anticipates
completing the Phase 1 capital raise process in Q1 CY2021, with the
nine-month construction period commencing soon thereafter and first
coal sales in H1 CY2022."
Authorised by
Brenda Berlin
Acting Chief Executive Officer
This announcement has been approved by the Company's Disclosure
Committee.
For more information contact:
Brenda Berlin Acting Chief Executive Officer MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
James Harris / James Dance Nominated Adviser Strand Hanson Limited +44 20 7409 3494
Rory Scott Broker (AIM) Tennyson Securities +44 20 7186 9031
James Duncan Financial PR (South Africa) R&A Strategic Communications +27 11 880 3924
Investec Bank Limited is the nominated JSE Sponsor
[1] The GSP independent Competent Persons Report can be found on the Company's website: http://www.mcmining.co.za/our-business/projects/gsp-mbeu-yashu
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END
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