On December 11, 2018, MC Mining Limited (ASX: MCM) came forward and have made an announcement regarding the Chapudi Project with the help of the press release. As per the press release which was issued by the company, MC Mining got the mining right with regards to the Chapudi project in which the company happens to have the 74% of the stake. This mining right which the company is referring has been given by South African Department of Mineral Resources. The Chapudi project of the company is being located in Limpopo province. This project along with two other projects namely Generaal as well as Mopane Projects makes up for the long-term GSP or Greater Soutpansberg Project.
MC Mining Limited’s GSP is situated near Musina-Makhado Special Economic Zone. This zone happens to be that one which is supposed to be primarily focused towards metallurgical processing as well as energy and this has been allowed by the government. The Chapudi Project helps the strategy of the company which focuses on being the robust producer in regard to the hard coking coal which gets utilised towards the process of the manufacturing of steel. Let us now quickly understand what management has to say about the mining right. The chief executive officer or CEO of the company reflected favourable views in regard to mining right. According to the CEO, with the mining right being granted, GSP would be well-positioned in regard to the supplying of coal to Musina-Makhado Special Economic Zone. The CEO gave some information related to Generaal as well as Mopane Projects in the press release and stated that the applications with regards to the mining right of these two projects have reached advanced stage and the CEO also believes that the mining right would be given moving forward. The CEO also believes that MC Mining would also be starting the studies which would be needed in regard to regulatory approvals related to the environment. However, the CEO flagged that it would begin studies related to outstanding water as well.
Let us now quickly have a look at the performance of MC Mining Limited. From the past few months, the stock has managed to deliver positive returns. In the past three months, the stock has delivered the return of 56.25% while in the past one month, the stock delivered 40.85% return. However, the market capitalisation of MC Mining Limited stood at $70.44 million. The last traded price of the company was A$0.500 per share.