JOHANNESBURG – MC Mining said on Tuesday the Department of Mineral Resources had granted a mining right for its 74 percent owned Chapudi coking and thermal coal project in Limpopo province.
The project, together with the Mopane and Generaal Projects, comprise the company’s longer-term Greater Soutpansberg Project (GSP) situated in the Soutpansberg coalfield.
The GSP is located close to the Musina-Makhado Special Economic Zone (SEZ), an area designated by the government to focus on energy and metallurgical processing, among others.
MC Mining said the Chapudi mining right was the first of the three GSP mining right applications submitted to the minerals department in 2013 to be granted.
It contains over 6.3 billion gross tonnes of inferred coal resources and supports the company's strategy to be a substantial producer of hard coking coal, which is used in the steel manufacturing process and typically attracts a significantly higher sales price than thermal coal.
"The granting of the mining right for the Chapudi Project is a key step in unlocking value from MC Mining’s significant coking and thermal coal assets and positions the GSP to be a potential long-term coal supplier to the planned Musina-Makhado SEZ.," CEO David Brown said.
"The Mopane and Generaal Project mining right applications are at an advanced stage and we anticipate that these will be granted in the near future."
The company said it continued to advance its flagship Makhado hard coking and thermal coal project, with recent milestones including the conclusion of a hard coking coal off-take agreement.
African News Agency (ANA)