MC Mining approves temporary hibernation of Uitkomst Colliery from March 1
Coal producer MC Mining has approved the temporary suspension of mining and processing operations, or the “hibernation”, of its Uitkomst Colliery, in KwaZulu-Natal, from March 1, subject to the completion of all required statutory, labour and regulatory processes.
The decision follows a detailed review of Uitkomst Colliery’s operational and financial performance and an assessment of available alternatives.
Despite the implementation of turnaround initiatives during 2025, Uitkomst has continued to experience operational underperformance and sustained cash losses, the miner states.
The board has determined that the temporary suspension of operations is appropriate at this time to limit further cash outflows while preserving optionality and asset value, pending a comprehensive review of future strategic options.
The temporary suspension of operations is intended to be a hibernation measure and does not constitute a permanent closure, a relinquishment of the mining right or a decision to place Uitkomst Colliery into liquidation or business rescue, MC Mining assures shareholders in a statement.
It emphasises that the hibernation process will be implemented in a structured, compliant, safe and socially responsible manner.
Employee retrenchment and related processes will be undertaken in accordance with applicable labour legislation, the company indicates.
It notes that activities will be implemented to secure and preserve assets, maintain environmental and social compliance, as well as protect the value of the operation during the hibernation period.
MC Mining will adopt a controlled and prioritised creditor payment process to mitigate legal, insolvency and reputational risks.
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