MC Mining Limited (Coal of Africa)
MC Mining Limited (Coal of Africa)
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A R60M loan from shareholder Dendocept will support South African coal company MC Mining while it attempts to finalise a debt funding package for the planned R625M development of its 68%-owned Makhado mine in the Soutpansberg coalfield.
The South African privateer, a 1.5% stakeholder which triggered a board spill in April that resulted in the election of new directors Nhlanhla Nene and Godfrey Gomwe, has made the standby facility available for 12 months. It’s repayable in cash or shares at MCM’s election.
South African-focused MC Mining is targeting the finalisation of financing arrangements during the Sept 2022 qtr, to be followed soon after by the start of construction, after delivering a robust BFS case for its 68%-owned Makhado hard coking and export-quality thermal coal mine.
The study by independent consultant Minxcon confirms its potential to produce 25.6Mt saleable coal over 22 years.
South African coal producer MC Mining is targeting the finalisation of financing arrangements and start of construction in 2022 based on a positive BFS for its 68%-owned Makhado hard coking and export-quality thermal coal mine.
Higher global demand for coal in the post-COVID economy has seen South African-focused producer MC Mining lift Dec half-year (H1FY22) revenue to $US13M, from $8.8M in the previous corresponding period.
Lower sales of 107,953t ROM coal (H1FY21: 127,534t) high-quality metallurgical and thermal coal mine from its Uitkomst mine were offset by the increase in prices to $109/t ($62/t) against production costs of $85/t ($54/t). An additional 11,655t high-ash middlings (11,569t) were sold.
MC Mining is progressing alternative strategies including new equity and further debt funding for the development of its 67%-owned Makhado hard coking and thermal coal project in the Soutpansberg coalfield.
It remains confident of finalising details to complete the funding package by end-June for the 183Mt in situ reserve it expects will position the company as South Africa’s pre-eminent hard coking coal producer.
Australian-based MC Mining has been given an extra month to pay the deferred consideration for its acquisition of the key Lukin and Salaita properties holding surface rights for its flagship Makhado hard coking and thermal coal project in South Africa’s Soutpansberg coalfield.
After paying the initial R35M in Jan 2019, MC's deferred R35M was due on Jan 10. It has now reached agreement to pay R6M on Jan 12 and the remainder on Feb 28.
Operations at MC Mining’s 70%-owned Uitkomst Colliery in the KwaZulu-Natal province of South Africa resumed earlier today after being suspended by civil unrest blamed by some on supporters of jailed former president Jacob Zuma.
The spreading civil unrest in the KwaZulu-Natal province of South Africa has led to the suspension of operations at MC Mining’s 70%-owned Uitkomst colliery.
Protests, road blockages and attacks on transport vehicles - blamed by some on supporters of jailed former president Jacob Zuma - have impacted towns and communities across the province including the homes of the majority of Uitkomst’s employees and contractors.
A significant fall in sales of high-value coal due to equipment breakdowns at its largest customer on top of labour issues including a 3-day blockade and high absenteeism due to suspected COVID-19 cases restricted March qtr (Q1FY2021) sales of metallurgical and thermal coal by MC Mining’s 70%-owned Uitmost colliery to 53,512t, down from 72,656t in the prior period.
High ash middlings coal sales by the South African mine totalled 8,789t (Q4FY2020: 8,830t). Lower volumes raised production costs to $US72.74/t ($47.54/t).
South African coal producer MC Mining is close to finalising capital for development of its 74%-owned Greater Soutpansberg coking and thermal coal projects in the Limpopo province after receiving the remaining mining right for its Mopane project area.
The Mopane mining right follows the earlier approvals for the Chapudi and Generaal projects.