Coal miner MC Mining has reported that the development of the Makhado project, in Limpopo, progressed well during the quarter ended September 30, with key milestones achieved despite experiencing some construction delays.

MC Mining says commissioning activities for the coal handling and preparation plant are expected to begin by December, noting that the principal mining contractor has begun with the openpit mining of the boxcut.

Additionally, civil foundational works for the coal plant are largely complete and significant progress is being made towards the commissioning of the 14 km overhead power transmission line.

MC Mining also notes that the operational improvement plan for Uitkomst Colliery (turnaround plan) was approved, and key improvement initiatives are being executed accordingly.

Overhead cost reductions are being realised, and focus has moved to increasing production through improved equipment availabilities and utilisation. Improved production is expected in the last quarter of this calendar year.

Run-of-mine (RoM) coal production from the Uitkomst Colliery, in KwaZulu-Natal, decreased by 21% on the previous quarter’s production, and was 8% lower than the comparative period in financial year 2025 at 82 588 t.

The reduction in production, compared with the first quarter of financial year 2025, was owing to delays in the start of the turnaround plan, temporary operational challenges – geological intrusions – and reduced machine availability owing to intensive repair and refurbishment being carried out as part of a turnaround plan.

MC Mining says the Uitkomst Colliery sold 47 116 t of high-grade coal during the quarter, a 1% decrease on the prior year sales, and there were no sales of the lower-grade middlings coal.

Coal plant yields remained high at 73% owing to operational improvement initiatives over the period, which offset the lower RoM coal production.

The company says limited activities were undertaken at the company’s Vele Aluwani semi-soft coking coal and thermal coal colliery, while the numerous coal deposits within the Greater Soutpansberg projects were evaluated and prioritised for development.

Additionally, depressed thermal coal prices continued with average prices of $91/t for the three months, compared with $90/t in the fourth quarter of financial year 2025 and $110/t in the first quarter of financial year 2025.

Premium steelmaking hard coking coal prices have decreased, averaging $185/t in the quarter compared with $212/t the first quarter of financial year 2025.

Available cash and facilities was $13.2-million at the period end.

Kinetic Development Group (KDG) made payments amounting to $15-million for the purchase of MC Mining shares, as part of the share subscription agreement, during the quarter and $5-million of the payment relates to the fourth second closing and $10-million of the payment relates to the fifth second closing as per the share subscription agreement.

The company made a further repayment of R10-million towards the Industrial Development Corporation loan during the quarter.

MC Mining also notes that it has appointed Yi (Christine) He as MD and CEO of the company and Jianheng (Albert) Deng as a nonexecutive director, while Zhen (Brian) He resigned as nonexecutive director of MC Mining.