Coal miner MC Mining has recorded a 31% year-on-year decrease in run-of-mine (RoM) tonnes from the Uitkomst Colliery, in South Africa’s KwaZulu-Natal province, for the six months ended December 31, 2024, mainly owing to geological challenges.

Output from the mine, at 185 558 t for the six months under review, compares with the 268 464 t produced in the prior comparable six months.

The company also posted lower RoM sales at 108 776 t in the reporting period, marking a 46% year-on-year decrease.

In total, including middlings sales, Uitkomst sold 121 793 t of coal, compared with the 202 715 t sold in the prior comparable period.

About 4 600 t of high-quality coal was stockpiled at Uitkomst at the end of December.

The colliery generated sales revenue of $8.4-million in the half-year, compared with $16.3-million of sales revenue in the prior half-year.

MC Mining reports a 40% higher loss after tax in the half-year at $8.4-million, or $0.0183 apiece, compared with a loss after tax of $6-million, or $0.0145 a share, in the prior comparable six months.

The group’s headline loss a share widened by 26% year-on-year from 1.45c in the prior half-year to 1.83c in the reporting half-year.

Nonetheless, MC Mining says its turnaround plan for Uitkomst is yielding pleasing results, but underground mining remains challenging owing to geological conditions and extended travel time to mining areas.

The international and domestic thermal coal markets have also been volatile for the company, with pricing pressure persisting.

The Vele Aluwani Colliery remains suspended and did not produce saleable thermal coal during the period.

Meanwhile, MC Mining’s Makhado steelmaking hard coking coal project has all the required regulatory approvals to start construction. The company expects the project to deliver positive returns for shareholders and position MC Mining as South Africa’s pre-eminent steelmaking hard coking coal producer, which will benefit the local steel production market.

MC Mining also continues to advance early stage development and exploration at the Greater Soutpansberg projects, which will serve as a catalyst for the company’s long-term growth.