Wrap Text
Market Update
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
27 February 2026
MC MINING – Market Update
MC Mining Limited ("MC Mining or the Company") is pleased to provide the following market update
regarding its shareholding structure and commensurate progress at its steelmaking hard coking coal
Makhado Project in the Limpopo Province, South Africa.
Shareholding
Following the completion of the most recent tranche (Sixth Tranche of the Second Closing) under the
previously announced share subscription arrangements, Kinetic Development Group Limited, now
holds approximately 44.01% of MC Mining's issued ordinary share capital.
Any further issuances of shares under the subscription arrangements remain subject to the satisfaction
of applicable conditions precedent.
Makhado Project – Operational Update
The Makhado Project continues to progress from construction to commissioning in line with the
Company's approved development plans and recent quarterly disclosures, with further on-site
milestones achieved. As the operation moves towards first coal production, it has consistently
incidents as the team continues its unwavering focus on stringent environmental management within
the framework of the relevant authorisations and mining-related permits.
Set to be South Africa's only large-scale producer of steelmaking hard coking coal (HCC) once
maintained an impressive health and safety record, with 1 005 lost-time injury (LTI) free days or 1 542
000 manhours worked without a single LTI ending December 2025. There have also been zero
reportable environmental steadystate production is reached, Makhado is planned to have a life of
mine of 28 years and is currently designed to produce 800 000 tonnes of HCC per year. Steady-state
production is planned to be reached by the end of calendar year 2026.
Mining activities:
• Overburden stripping activities at the open-cast pit continue to advance, with more than 5
million cubic metres of overburden removed to date.
• Mining is approaching the final stages of pit development, with coal seams expected to be
exposed following the completion of the remaining stripping campaign.
• Mining activities remain aligned with the planned delivery of run-of-mine (ROM) coal to the
coal handling and preparation plant (CHPP) during commissioning.
Coal Handling and Preparation Plant (CHPP) activities:
• Civil foundation works for the CHPP have been largely completed.
• Current activities are focused on structural steelworks, mechanical installation and equipment
fit-out.
• Electrical, pipeline and cabling installations are progressing in parallel.
• Completion of the CHPP construction works is targeted for the end of March 2026, subject to
normal construction and commissioning prerequisites.
• Hot commissioning and integrated trial operations are planned to commence during April
2026, subject to the successful completion of construction and safety readiness reviews.
Infrastructure and power activities:
• Construction of the permanent access bridge has been completed and the bridge is now
operational.
• Water supply pipeline connection works are progressing in an orderly manner.
• Installation of the 22kV main power line has largely been completed.
• Equipment for the mining area substation has been delivered to site, with final installation and
commissioning works ongoing.
• Completion of remaining infrastructure and power supply works is targeted for the first quarter
of calendar year 2026.
Production and ramp-up:
MC Mining reiterates that it has not revised its previously disclosed production objectives.
• Initial production performance will depend on commissioning outcomes, operational rampup
and prevailing operating conditions.
• Future expansion of production capacity beyond the foundation phase target of 4 million
tonnes per annum of run-of-mine feed to the coal processing plant resulting in 776,000 tonnes
per annum of coking coal, and 645,000 tonnes per annum of thermal coal, is subject to further
technical evaluation, Board approval, funding availability and any supplementary regulatory
approvals, if so required.
• Should future expansion of production result in favourable outcomes, further growth plans
will be pursued to increase annual production capacity within the next two years to 2.2 million
tonnes per annum of coking coal and 1.8 million tonnes per annum of thermal coal. This future
expansion will be subject to successful technical evaluation, Board approval, raising funding
and any supplementary regulatory approvals required.
Local economic transformation
The workforce onsite now numbers 970 people of whom 435 are employed from the Makhado
municipal area. Contractors are expected to apply diligence in sourcing local labour, especially in
general and semi-skilled positions.
A training and skills development programme is focused on the immediate skills requirements, such
as equipment operators, Competent A and B, and blasting, among others. A contractor recently
completed training in working at heights and steel erection for a group of general workers, enhancing
their skills and contributing to their personal development.
To date, a substantial number of local businesses have been involved in site preparation and
construction at the Makhado Project, as well as providing services such as transport, waste
management, fencing, dust suppression, bulk water system construction and an accommodation
upgrade, among others.
Ms Christine He, Managing Director and Chief Executive O?cer of MC Mining commented, "we are
acutely aware that when our resources are developed responsibly, we can bring sustainable change
to the lives of the people who reside in communities around our operations. Our relationships with
local communities and other stakeholders are critically important to the business because it is only
through partnerships and collaboration that we can deliver a positive social and economic
contribution for all our stakeholders".
"Our excellent safety, health, environmental and regulatory compliance performances have become a
recognisable feature of the venture to date and something of which we are extremely proud",
explains He.
No change to prior disclosures
Except as outlined above, there has been no material change to MC Mining's previously released
guidance, development plans or strategic objectives.
The Company will continue to keep shareholders informed of material developments through ASX and
SENS announcements in accordance with its continuous disclosure obligations.
JSE Equity Sponsor: BSM Sponsors
About MC Mining Limited:
MC Mining is an 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 (hard coking coal), Vele Colliery (semi-soft coking and thermal coal), and the
Greater Soutpansberg Projects (coking and thermal coal).
Date: 27-02-2026 10:10:00
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