Coal miner MC Mining has started implementation of a revised business plan at its Uitkomst Colliery, in KwaZulu-Natal. The revised plan involves significant operational changes to position the operation for future growth.

Uitkomst produces pulverised coal injection for the steel industry and specialised coal products for the manufacturing industry, both of which reduce input costs for producers and provide local industries with import substitution.

The turnaround plan is being implemented with the assistance of Metalla Tutum Engineering – a South African specialist mining consultancy and engineering company.

Metalla has experience and expertise in mine management and operational improvements.

MC Mining and its subsidiary Uitkomst Colliery conducted various consultations with organised labour, service providers and regulators in drafting the turnaround plan.

The plan’s key focus areas include to reconfigure the mine’s underground layouts to streamline operational efficiencies and resource deployment; implement coal handling and processing plant modifications to improve coal product yields; reduce workforce numbers from 430 to 366 with minimal forced retrenchments; and enter into longer-term coal offtake agreements to stabilise price certainty.

The changes should see Uitkomst improving on the operation’s safety and health performance, reducing unit costs of saleable coal production and reducing volatility in earnings.

While MC Mining is positioning the Uitkomst operation to support South Africa’s Steel Master Plan by becoming a significant regional supplier of steelmaking coal products, its flagship Makhado project stands to be the largest hard coking coal producer in the country.

The Makhado project, in Limpopo, is due for commissioning in December, and once operational will help the local steel industry further substitute hard coking coal imports.

MC Mining interim chairperson Mathews Senosi says the inclusion of a seasoned mining contractor as turnaround adviser for Uitkomst will help drive forward the group’s growth strategy and secure a sustainable future for the colliery.

It will also allow the company to focus the group’s limited resources on bringing Makhado to account this calendar year.

MC Mining’s share price on the JSE rose by 6.15% on the announcement of the implementation of the new business plan.

The company is also listed on the ASX.