On Tuesday, MC Mining Ltd (LON: MCM) announced that the South African Department of Mineral Resources granted a mining right for its 74% owned Generaal coking and thermal coal project in the Limpopo province.
The Generaal, Chapudi and Mopane Projects comprise the Company’s Greater Soutpansberg Project. The GSP is in close proximity to the Musina-Makhado Special Economic Zone, which is an area designated by the government to focus primarily on energy and metallurgical industries.
The Generaal Project contains more than 407 million gross tonnes of inferred coal resources, which supports the MC Mining strategy of being South Africa’s pre-eminent producer of hard coking coal.
The Group submitted its mining right applications for the three GSP projects to the South African Department of Mineral Resources in 2013. The Generaal Project mining right is the second of the applications to be granted, following the Chapudi Project being granted in December 2018.
Elsewhere, KEFI Minerals PLC (LON: KEFI) said it was still waiting for a go-ahead at the Tulu Kapi Gold project and Panther Metals Plc (NEX: PALM) secured a lucrative exploration licence. Meanwhile, Shanta Gold Limited (LON: SHG) and Mining company Capital Mining Ltd (LON: CAPD) both reported impressive third quarters.
MC Mining comments
David Brown, Chief Executive Officer, stated,
“The granting of the Generaal Project mining right is a further step in unlocking value from MC Mining’s significant coking and thermal coal assets, positioning the GSP to be a potential long-term coal supplier to industrial users both local and offshore, including the planned Musina-Makhado SEZ.”
“The long-term development of the three GSP project areas is complementary to our flagship Makhado hard coking coal project, also in the Soutpansberg Coalfield. The Company has made significant progress in advancing Makhado during the last 12 months and anticipates completing the Phase 1 capital raise process in the near-term in order to facilitate the commencement of construction in Q1 CY2020. The conclusion of domestic and export Makhado Phase 1 and Phase 2 off-take agreements reflects the market appetite for hard coking coal and the significant potential of projects located in this coalfield.”
Investor notes
The Company’s shares dipped by 6.67% or 2.00p to 28.00p 05/11/19 13:25 GMT. Analysts from Peel Hunt reiterated their ‘Buy’ stance on MC Mining stock. Neither a p/e ratio nor dividend yield are available, the Group’s market cap is £42.26 million.