By Valentine Uchechukwu Ndukwu
MC Mining Makes Steady Progress on Makhado Project Despite Delays
MC Mining, a South African coal mining company, has announced that work on its Makhado Project in Limpopo is moving forward steadily, even though there have been some construction delays.
The company said major developments have been achieved, and the coal handling and preparation plant is expected to start testing operations by December 2025.
The main mining contractor has already begun open-pit mining work, and most of the foundational civil work for the coal plant is nearly complete.
In addition, significant progress has been made on the installation of a 14 km power transmission line that will support the project.
The company also confirmed that its Uitkomst Colliery in KwaZulu-Natal has begun implementing a new operational improvement plan aimed at boosting production and cutting costs.
While coal production from Uitkomst dropped by 21% compared to the previous quarter, this decline was mainly due to repair work and geological challenges. However, MC Mining expects production to rise again by the end of the year.
The colliery sold 47,116 tonnes of high-grade coal during the quarter and maintained a solid 73% yield rate, which helped offset lower raw production numbers.
Elsewhere, activities at the Vele Aluwani Colliery remained limited as the company focused on reviewing its coal deposits in the Greater Soutpansberg region for future development.
Despite facing a continued drop in global coal prices, MC Mining maintained a healthy cash balance of $13.2 million by the end of the quarter.
The company also made progress on financial commitments, including a R10 million loan repayment to the Industrial Development Corporation.
To strengthen its leadership, MC Mining appointed Yi (Christine) He as Managing Director and CEO, with Jianheng (Albert) Deng joining as a nonexecutive director.
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