JSE-listed MC Mining’s Makhado steelmaking hard coking coal (HCC) project, in Limpopo, achieved significant development milestones towards commissioning of the coal handling and preparation plant (CHPP) by December, with construction of the CHPP under way; construction power in place, with over 14 km of overhead power lines erected; and the temporary access bridge to the project site now serviceable.

The company says in an update on its third fiscal quarter, ended March 31, that run-of-mine (RoM) coal production from the Uitkomst steelmaking and thermal coal mine, in KwaZulu-Natal, was 13% lower year-on-year at 101 101 t, with the reduction in production owing to lower-than-expected coal seam widths and lower mining fleet availability.

Uitkomst sold 56 320 t of high-grade coal during the quarter but no lower-grade middlings coal.

Coal preparation plant yields improved, owing to operational improvement initiatives, from 60% to 73% over the period to help ameliorate some of the lower RoM production.

Limited activities were undertaken at the company’s Vele Aluwani semi-soft coking coal and thermal coal colliery and Greater Soutpansberg Projects.

Depressed thermal coal prices continued, with average prices of $96/t for the three months, compared with $110/t in the second quarter and $97/t in the March 2024 quarter.

Premium steelmaking HCC prices have decreased, averaging $187/t in the quarter compared with $312/t in the March 2024 quarter.

MC Mining had available cash and facilities of $9-million at the period end.

Kinetic Development Group has made payments amounting to $20-million for the purchase of MC Mining shares as part of the share subscription agreement during the quarter.

The Industrial Development Corporation of South Africa (IDC) extended the date for repayment of the R160-million loan plus interest thereon, to June 30, on condition that the company make a payment of R10-million to the IDC, which was made during the quarter.

The company made a further repayment of R100-million to the IDC during the quarter.