Coal miner MC Mining has noted a 3% quarter-on-quarter improvement in run-of-mine (RoM) coal production at its Uitkomst colliery to 104 129 t in the quarter ended June 30.

Compared with the same quarter last year, however, production was 9% lower year-on-year, which the company attributes to disruptions while reconfiguring underground layouts as part of the Uitkomst operation’s turnaround plan.

The mine sold 68 020 t of high-grade coal during the quarter under review, marking a 9% increase in sales year-on-year.

MC Mining says coal plant yields remained high at 69% on the back of operational improvement initiatives over the period, which offset the lower RoM coal production to result in improved sales volumes.

The company experienced depressed thermal coal prices in the quarter, with prices averaging $90/t, compared with a thermal coal price of $96/t recorded in the prior quarter and $108/t in the same quarter of last year.

Premium steelmaking coal prices have also decreased to average $184/t in the reporting quarter, compared with $243/t in the same quarter last year.

MC Mining had $7.4-million of available cash and facilities at the end of June, after a repayment of R10-million towards a loan it has in place with the Industrial Development Corporation.

The company’s Vele Aluwani semi-soft coking coal and thermal coal operation remains suspended.

This while development of the company’s flagship Makhado coal project remains on schedule for commissioning by December. Makhado will be South Africa’s largest hard coking coal producer, poised to produce 800 000 t/y at steady state over a 28-year mine life.

Further, MC Mining completed the operational improvement plan at Uitkomst, which will be in full implementation during the current quarter.

The company expects the turnaround to result in cost improvements, stabilised earnings and higher operational efficiencies.

Contiguous to the Makhado project are satellite deposits comprising the Greater Soutpansberg mineral tenements. The area is also endowed with steelmaking coal potential and will be the focus of the company once the Makhado project is completed.

These satellite deposits will ultimately supplement production at Makhado. The work required to obtain environmental and water-use licences for the mining rights is expected to start during the second half of the year.