Coal miner MC Mining has reported that, for the quarter ended June 30, run-of-mine (RoM) coal production at the Uitkomst steelmaking and thermal coal mine, in KwaZulu-Natal, was 113 977 t, 4% lower than the 118 469 t produced in the comparable quarter of 2023.

The company attributed the decrease to unfavourable geological conditions and underground equipment availability challenges during the period.

The Uitkomst Colliery executed a three-month trial of a coal marketing exclusivity agreement with Paladar from May 1. MC Mining explains that, in terms of the agreement, Paladar would pay 90% of the $87/t sales price in the week following production, with the balance due within 30 days.

During the quarter, Uitkomst sold 62 274 t of high-grade duff and peas coal, including sales to Paladar. The colliery also sold a further 10 099 t of middlings coal during the three months.

Owing to the sales of coal to Paladar, the colliery had zero tonnes of high-grade coal in inventory at the end of the quarter.

Uitkomst did not extend the three-month Paladar trial period which ended on July 31.

Meanwhile, the company says development of the company’s' flagship fully licensed and shovel-ready Makhado project is expected to position MC Mining as South Africa's preeminent steelmaking hard coking coal (HCC) producer.

“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,” says MC Mining.

Funding and development activities for Makhado are ongoing.

Further, the company reports that, at the Greater Soutpansberg projects, mining rights were previously executed for the Mopane and General project areas.

During the quarter, MC Mining executed the mining right for the Chapudi project area. The company notes that studies required for the environmental and water-use licences are expected to commence during the second half of this calendar year.

Additionally, operations at Vele remain suspended.