Power Development Macadu Project Launch Countdown

The News (Reporter Jiao Yue): Power Development Group Co., Ltd. (hereinafter referred to as “Power Development”) recently issued a voluntary announcement that the mining construction project at Makhado, South Africa, has entered the final sprint stage, with joint trial operation expected to commence in April 2026.

The company is gradually increasing its control over MCMining through a phased capital increase and share expansion. After the most recent subscription and settlement, the company holds approximately 44.01% of MCMining’s issued share capital. Once the remaining tranches are settled, the company will ultimately hold 51% of the common shares, achieving absolute control over MCMining.

This strategic move is not merely an equity acquisition but a lock-in of high-quality resources—Makhado is expected to be South Africa’s only large-scale hard coking coal production project. It boasts abundant resources and excellent coal quality, with a resource volume of 706 million tons. Its coking coal products are expected to be widely used in steelmaking and non-ferrous metal smelting, giving it strong competitiveness in the international coking coal market. After controlling the project, the company will fully oversee production operations, sales pricing, and capacity expansion plans. This marks a strategic upgrade from “domestic coal stability” to “overseas mineral resource growth,” moving from “cooperative participation” to “core control” of overseas resources.

Since the start of mining construction at the end of 2024, various phases of the Makhado project have progressed steadily according to schedule and are now in the final stages. Based on the current coal preparation plant design capacity, once stabilized, the project is expected to produce approximately 800,000 tons of coking coal and 700,000 tons of thermal coal annually, totaling about 1.5 million tons of refined coal. The company is designing and testing future capacity enhancement plans. If successful, within the next two years, coking coal production could increase to 2.2 million tons, thermal coal to 1.8 million tons, and total refined coal output to 4 million tons, representing an increase of over 160%.

Regarding pricing mechanisms, products will adopt an “international index-linked pricing” model, referencing major international market indices. Recently, the CFR price of coking coal at Chinese ports is about $200 per ton, and the local port price of thermal coal is about $75 per ton. Based on these figures, the annual sales revenue during the basic capacity phase could reach approximately $210 million. After production expansion, annual sales revenue could increase to about $580 million (this is an estimated figure; actual revenue depends on the transaction prices of refined coal after commissioning and the achievement of production targets).

Additionally, the announcement states that negotiations have been conducted with over 20 potential clients across Africa, Southeast Asia, the Middle East, South America, Europe, and China. This broad market layout provides strong support for product sales.

Strategically, this project will further consolidate the company’s “domestic coal stability + overseas resource growth” dual-driven development model, effectively reducing cyclical risks associated with single businesses. It will also help the company accumulate valuable experience in overseas mineral development and cross-regional operations, opening up space for expanding more high-quality overseas resources and promoting the company’s transformation from a “coal enterprise” to a “diversified resource platform.”

(Editor: Zhang Xin)