Wrap Text
Chapudi Project - Mining Right Granted
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT 11 December 2018
CHAPUDI PROJECT - MINING RIGHT GRANTED
MC Mining Limited (“MC Mining" or the “Company”) is pleased to announce
that the South African Department of Mineral Resources (“DMR”) has
granted a mining right for its 74% owned Chapudi coking and thermal
coal project (“Chapudi Project”) in the Limpopo province. The Chapudi
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 within close proximity to the Musina-Makhado
Special Economic Zone (“SEZ”), an area designated by government to
focus on amongst others, energy and metallurgical processing.
The Chapudi mining right is the first of the three GSP mining right
applications to be granted; these applications were submitted to the
DMR during 2013. The Chapudi Project alone contains over 6.3 billion
gross tonnes in situ of inferred coal resources1 and supports MC
Mining’s strategy to be a substantial producer of hard coking coal,
used in the steel manufacturing process and typically attracting a
significantly higher sales price compared to thermal coal.
David Brown, MC Mining’s Chief Executive Officer commented:
“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. 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.
Following this, the Company will commence with the various studies
required for the outstanding water and environmental regulatory
approvals.
We continue to advance our flagship Makhado hard coking and thermal
coal project and the November 2018 agreement to acquire the Lukin and
Salaita properties facilitates the completion of geotechnical and
related infrastructure studies for the proposed colliery. Further,
recent Makhado Project milestones include the conclusion of a hard
coking coal off-take agreement while negotiations for the remaining
hard coking coal as well as the thermal coal and funding initiatives
are progressing and updates will be provided when appropriate.”
AUTHORISED BY:
David Brown
Chief Executive Officer
For more information contact:
David Brown Chief Executive MC Mining Limited +27 10 003 8000
Officer
Brenda Berlin Chief Financial MC Mining Limited +27 10 003 8000
Officer
Tony Bevan Company Secretary Endeavour Corporate +61 08 9316
Services 9100
Company advisors:
Jos Simson/ Gareth Financial PR Tavistock +44 20 7920
Tredway (United Kingdom) 3150
Ross Allister/David Nominated Adviser Peel Hunt LLP +44 20 7418
McKeown and Broker 8900
Charmane Russell/Olwen Financial PR R&A Strategic +27 11 880 3924
Auret (South Africa) Communications
Investec Bank Limited is the nominated JSE Sponsor
About MC Mining Limited:
MC Mining is an AIM/ASX/JSE listed coal exploration, development and mining company
operating in South Africa. MC Mining’s key projects include the Uitkomst Colliery
(metallurgical and thermal coal), Makhado Project (coking and thermal coal). Vele
Colliery (coking and thermal coal), and the Greater Soutpansberg Projects (MbeuYashu).
Forward-Looking Statements
This Announcement, including information included or incorporated by reference in
this Announcement, may contain "forward-looking statements" concerning MC Mining that
are subject to risks and uncertainties. Generally, the words "will", "may", "should",
"continue", "believes", "expects", "intends", "anticipates" or similar expressions
identify forward-looking statements. These forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially from those
expressed in the forward-looking statements. Many of these risks and uncertainties
relate to factors that are beyond MC Mining’s ability to control or estimate
precisely, such as future market conditions, changes in regulatory environment and
the behaviour of other market participants. MC Mining cannot give any assurance that
such forward-looking statements will prove to have been correct. The reader is
cautioned not to place undue reliance on these forward looking statements. MC Mining
assumes no obligation and do not undertake any obligation to update or revise publicly
any of the forward-looking statements set out herein, whether as a result of new
information, future events or otherwise, except to the extent legally required.
Statements of intention
Statements of intention are statements of current intentions only, which may change
as new information becomes available or circumstances change.
Regulatory
This announcement is inside information for the purposes of Article 7 of Regulation
596/2014.
MC Mining has ensured that the mineral resources quoted are subject to good governance
arrangements and internal control. The Company has engaged external independent
consultants to update the mineral resource in accordance with the JORC Code 2012 and
SAMREC 2016. The units of measure in this report are metric, with Tonnes (t) =
1,000kg. Technical information that requires subsequent calculations to derive
subtotals, totals and weighted averages may involve a degree of rounding and
consequently introduce an error. Where such errors occur MC Mining does not consider
them to be material.
Coal Resources completed for the Greater Soutpansberg Project - Mineral Resources:
MC Mining completed a review and update to its Mineral Resource for the GSP during
2017. The review and verification was undertaken by Venmyn Deloitte (Pty) Ltd,
commissioned to prepare an Independent Competent Persons report in accordance with
the AIM Rules. The Coal Resources for the GSP assets were estimated and signed-off
by MC Mining's Competent Person, Mr J Sparrow (Pr.Sci.Nat.) (MC Mining's Group
Geologist.
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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