MC Mining cedes majority control to KDG in a $90 million deal

MC Mining, an investment company focused on coking and thermal coal projects in South Africa, has sold a 51% stake to Kinetic Development Group (KDG) in a $90 million deal, handing the Hong Kong-listed coal producer majority control of the South Africa-focused miner.

The transaction, completed April 22, 2026, is set to accelerate development of the Makhado Project in Limpopo, one of Africa’s most advanced undeveloped metallurgical coal assets.

The move comes as global demand for steelmaking coal remains firm, supporting continued investment in export-oriented mining projects.

Ownership shift as Makhado moves toward production

MC Mining issued 28.9 million new shares to KDG’s special purpose vehicle, Kinetic Crest, completing a phased investment first announced in 2024. The deal formally makes MC Mining a subsidiary within KDG’s global coal portfolio, following full regulatory approval, including clearance from South Africa’s Competition Commission.

Most of the $90 million investment will fund the Makhado Project, where construction is already underway. Development includes coal processing infrastructure, power and water systems and bulk earthworks and civil construction. The project is nearing commissioning, signaling a shift from development to production.

Production targets, market positioning, and balance sheet after deal

MC Mining aims to produce 800,000 tonnes of hard coking coal annually and 700,000 tonnes of thermal coal annually. The company plans to supply both export and regional markets, positioning itself within the seaborne metallurgical coal trade.

The investment improves MC Mining’s financial position by reducing reliance on short-term debt, increasing working capital flexibility, and supporting operational sustainability. KDG also brings technical expertise, procurement efficiencies, and large-scale mining capabilities.

Board changes reflect new control

Following the transaction, Bill Pavlovski stepped down as director, while Guo Xin joined as a non-executive director, and Mei Zhang also joined the board. The changes reflect KDG’s increased governance role.

Strategic significance

MC Mining Limited, formerly Coal of Africa Limited, was founded in 1979 and focuses on developing high-quality coking and thermal coal assets in South Africa’s Limpopo province. The Australia-incorporated company operates key projects including Uitkomst and Vele collieries, the Makhado Project, and the Greater Soutpansberg Projects.

The deal highlights growing cross-border investment in African mining assets, particularly in commodities linked to industrial production. For South Africa, the Makhado Project strengthens export capacity and supports infrastructure development. For MC Mining, the partnership reduces funding risk and accelerates execution of a long-delayed project.