JSE-, ASX- and Aim-listed MC Mining has reported a 26% year-on-year decrease in run-of-mine (RoM) coal production from the Uitkomst steelmaking and thermal coal mine, in KwaZulu-Natal, to 95 489 t for the quarter ended December 31.

The company explains that the 26% decrease in RoM coal production is owing to unfavourable geological conditions and underground equipment availability challenges during the period.

The company notes that Uitkomst sold 61 195 t of high-grade duff and peas coal during the quarter, compared with the 102 266 t sold in the quarter ended December 31 2023.

The colliery also sold 4 276 t of middlings coal during the three months. The colliery had 1 799 t of high-grade coal inventory as at December 31, compared with 14 422 t as at December 31, 2023.

Meanwhile, production costs per saleable tonne were 70% higher year-on-year, as a result of the decrease in production volumes.

Further, MC Mining says progress was made on select early works activities at the Makhado steelmaking hard coking coal (HCC) project, along with order placements being made for long lead items for the coal handling and processing plant (CHPP) and related infrastructure.

The development of the company’s flagship fully licensed and shovel-ready Makhado project is expected to position MC Mining as South Africa’s pre-eminent steelmaking HCC producer, the company says.

The company notes that the Makhado project remains a significant strategic asset for the company that has the potential to take the company’s production profile to more than 800 000 t/y of steelmaking HCC and will generate significant returns for shareholders.

Funding and development activities for Makhado are ongoing.

Select early works continued on site at the Makhado project, with the erecting of power supply lines ongoing, the start of construction of a temporary bridge across the Mutamba river to provide access for construction works and the start of bulk earthworks related to the CHPP terrace.

MC Mining says Environmental and Process Technologies (Enprotec), continued with the detailed designing of the CHPP, along with early order placements for long-lead items related to the CHPP.

Meanwhile, operations at the Vele colliery remain suspended.

MC Mining says the studies required for the environmental and water-use licences at the Greater Soutpansberg projects are expected to commence during the first half of calendar year 2025.

The company explains that depressed thermal coal prices continued with average prices of $110/t for the three months, compared to $110/t in the first quarter of financial year 2025 and $116/t in the second quarter of financial year 2024.

Premium steelmaking HCC prices have decreased, averaging $206/t in the quarter compared to $335/t in the second quarter of financial year 2024.

CORPORATE ACTIVITY

On December 13, 2024, the Competition Commission issued a Merger Clearance Certificate for the proposed transaction with Kinetic Development Group, with conditions.

MC Mining says fulfilment of the key condition to the second close occurred, as defined in the share subscription agreement, being that MC Mining’s shareholders passed a resolution approving the Second Closing by the majorities required under the Australian Corporations Act.

The resolution was passed on January 23.

The Industrial Development Corporation of South Africa (IDC) Limited 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.

The repayment of the loan, plus accrued interest, was due for repayment by September 30, 2024.