KINETIC DEV (01277) has announced that all conditions precedent for the second tranche have been satisfied, with the subscription agreement completed on April 22, 2026. Following completion, the group has subscribed for and been allotted a total of 431 million new ordinary shares in MC Mining, representing 51% of its enlarged issued share capital. Consequently, MC Mining has become an indirect non-wholly-owned subsidiary of the company. The total subscription consideration of $90 million was fully settled using the group's internal resources.
Post-completion, the board of MC Mining has been reconstituted. As of the date of this announcement, the company holds 5 out of 9 board seats at MC Mining, thereby assuming management control and obtaining practical control over its strategic direction and operational management. As an indirect non-wholly-owned subsidiary, MC Mining's financial results will be consolidated into the group's financial statements starting from the completion date.
MC Mining's mineral rights hold a total JORC resource of approximately 8.3 billion tonnes, including the flagship Makhado project, the Vele Aluwani coal mine, the Uitkomst coal mine, and the Greater Soutpansberg project. With the completion of this subscription, the group's consolidated coal resources have reached approximately 8.99 billion tonnes.
Moving forward, the group will prioritize operational integration between MC Mining and the wider group to enhance overall synergies. It will leverage its experience in coal mining and supply chain cost advantages to continuously optimize MC Mining's cost structure and improve its operational performance. This strategy aims to gradually unlock the value of its various coal assets and deliver sustainable, stable returns to shareholders.
The following is an operational overview of MC Mining's four main coal projects. The Makhado project is MC Mining's flagship coking coal project. The coal preparation plant is currently in the final stages of engineering and undergoing individual equipment testing, with integrated trial operations imminent. The open-pit mine has fully exposed the coal seam, with all production preparations complete, ready to commence large-scale mining. Future plans involve optimizing mining methods, improving washing efficiency, and strengthening cost control throughout the process to establish a high-capacity, high-efficiency, high-quality core coking coal production base.
The Greater Soutpansberg project, located in South Africa's Limpopo province, possesses high-quality coking coal resources across an area of approximately 88,000 hectares, with a JORC resource of about 6.9 billion tonnes and secure mineral rights. The project has entered an advanced exploration and pre-feasibility stage. The group will prioritize developing core blocks, focusing on open-pit mining to establish a large-scale, modern coking coal production base.
The Uitkomst coal mine has completed its care and maintenance program. The group is currently conducting process optimization designs and various preparatory work to increase the mine's capacity, continuously refining technical plans to be fully prepared for the project's future restart, rapid production resumption, and capacity release.
The Vele Aluwani coal mine is currently idled. The group plans to conduct a feasibility study for Vele Aluwani, considering its soft coking coal resources, after the Makhado project is fully operational. If conditions are favorable, production could resume following only technical modifications to the coal preparation plant, thereby diversifying the product mix and enhancing the group's overall coking coal output and profitability.
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