A major dispute has erupted over MC Mining's flagship Makhado steel-making, hard-coking coal project (Makhado Project), just days after the company celebrated the commencement of open-pit mining at the site. The Democratic Alliance (DA) has launched serious allegations of illegal activity, claiming the project operates without a valid environmental authorisation — a charge MC Mining vehemently denies.
On 15 August, MC Mining announced the start of open-pit mining at its Makhado Project in Limpopo. The company reported rapid progress towards coal production, with a coal-handling and -preparation plant under construction and scheduled for commissioning by year-end 2025. MC Mining highlighted an "excellent health and safety record" and "full regulatory compliance," with zero lost-time injuries since activities began in November 2024.
However, on 21 August, the DA's spokesperson for Forestry, Fisheries and Environment, MP Andrew de Blocq, sent an urgent letter to Minister of Mineral and Petroleum Resources Mr Gwede Mantashe, expressing "urgent concern about illegal mining activity" at the Makhado Project. De Blocq stated that an appeal submitted on 30 June 2021 by interested and affected parties suspended the environmental authorisation, contrary to previous contentions by the minister.
De Blocq specifically cited Section 43(7) of the National Environmental Management Act (NEMA), which states: "An appeal under this section suspends an environmental authorisation...". He argued that this, combined with Section 5A of the Mineral and Petroleum Resources Development Act (MPRDA), which requires an environmental authorisation for mining, meant any current operations were illegal. He stressed that no decision on the merits of the appeal had been taken since 2021; therefore, the suspension remained in force, and activities were in "clear contravention of both Section 24F of NEMA and the aforementioned provisions of the MPRDA".
Crucially, De Blocq noted that MC Mining had not applied for the non-suspension of the authorisation as per Section 43(9) of NEMA. He further stated that the Department of Forestry, Fisheries and Environment (DFFE) had corroborated this legal interpretation, confirming the absence of an environmental authorisation. Photographic evidence from January and July 2025 was attached, showing "extensive and ongoing activity" at the site, which the DA suggests began around June 2024. De Blocq highlighted MC Mining's own announcement on 15 August, celebrating the commencement of open-cast mining, as confirmation of the activity.
The DA also raised significant concerns about MC Mining's financial standing, including the alleged lapsing of its R77.4 million environmental rehabilitation financial guarantee and its "commercially insolvent" status as of June 2024. They pointed to a sharp decline in revenue, net income, and net profit margin since December 2024, warning of a "serious risk to the national fiscus" if the company were unable to fund rehabilitation. This precarious financial position, De Blocq argued, posed a danger to the environment, particularly the enveloping Vhembe Biosphere Reserve, a biodiversity-rich region. The DA also referenced MC Mining's (formerly Coal of Africa Limited) "historical track record of environmental non-compliance" at its Vele Colliery, including a R9 million administrative fine for commencing activities without authorisation.
In response, MC Mining issued a media statement on 25 August "vehemently deny[ing]" allegations of conducting illegal mining activities and that its environmental authorisation had been suspended. The company dismissed recent media reports based on De Blocq's letter as "groundless and devoid of facts".
MC Mining stated that appeals lodged by groups opposed to mining "were considered and dismissed" over the years. While acknowledging "processes pending in the North Gauteng High Court and the Department of Forestry, Fisheries and the Environment," the company maintained it "lawfully commenced with the execution of listed activities" in June 2021, in accordance with its approved environmental authorisation, having duly notified the competent authority. MC Mining stated that it "continues to operate in accordance with its approved licencing and within the South African legal framework".
Addressing the financial concerns, MC Mining affirmed that it had made "adequate financial provision for rehabilitation and closure" and that "relevant guarantees remain in place in compliance with applicable laws and regulations". The company also claimed adherence to environmental stewardship principles, operating within the prescripts of Section 15 of the National Forests Act, and having all legally required permits.
Andrew Modise, Executive Head: Corporate Affairs for MC Mining, concluded that the company remained focused on commissioning the Makhado Project within the legislative framework and pledged full cooperation with any necessary investigations.