MC Mining Advances Makhado Project as Uitkomst Turns Around Amid Coal Price Pressures
MC Mining reports zero lost time injuries and steady progress on its flagship Makhado Project, while Uitkomst Colliery implements a turnaround plan that boosts sales despite production challenges.
- Makhado Project on track for December 2025 coal plant commissioning
- Uitkomst Colliery completes operational turnaround plan with improved sales and reduced costs
- Zero lost time injuries recorded across operations this quarter
- Coal prices remain depressed, impacting revenue despite operational gains
- Corporate updates include new board appointments and ongoing loan repayments
Safety and Operational Progress
MC Mining Limited has reported a quarter free of lost time injuries (LTIs), underscoring a strong commitment to health and safety across its South African coal operations. The Makhado steelmaking hard coking coal Project, the company’s flagship development, has now achieved an impressive 817 days without an LTI, reflecting rigorous safety protocols as construction advances.
Meanwhile, the Uitkomst Colliery, a mature underground mine, also recorded zero LTIs this quarter, marking a significant improvement from the previous period. This safety milestone accompanies the completion of a comprehensive turnaround plan aimed at enhancing operational efficiency and cost control.
Makhado Project Development on Schedule
The Makhado Project continues to progress according to plan, with commissioning of its coal handling and preparation plant (CHPP) expected by December 2025. Key milestones achieved this quarter include the appointment of JCI Mining Proprietary Limited as the principal mining contractor, commencement of site establishment, and procurement of critical coal plant equipment now at factory acceptance testing stage.
Infrastructure development is also advancing, with significant work on a 14-kilometre overhead power transmission line and the start of construction on a permanent access bridge. These developments are critical to supporting the mine’s planned annual production of 800,000 tonnes of hard coking coal, positioning Makhado as South Africa’s largest producer in this category once operational.
Uitkomst Colliery’s Turnaround and Production Dynamics
At Uitkomst, the recently completed turnaround plan is set for full implementation in the coming quarter, supported by specialist consultants Metalla Tutum Engineering. The plan focuses on reconfiguring underground mining layouts, improving coal plant yields, reducing workforce numbers with minimal retrenchments, and securing longer-term coal offtake agreements to stabilize earnings.
Production volumes showed a modest 3% increase quarter-on-quarter to 104,129 tonnes of run-of-mine coal, though this remains 9% below the prior year due to mine reconfiguration and lower coal seam heights. Encouragingly, sales of high-grade coal rose 9% year-on-year, aided by improved coal preparation plant yields of 69%, which helped offset production challenges and contributed to a 9% reduction in production costs per saleable tonne.
Market and Financial Position
Despite operational improvements, MC Mining continues to face headwinds from depressed coal prices. Thermal coal prices averaged US$90 per tonne this quarter, down from US$108 per tonne a year earlier, while premium hard coking coal prices declined to US$184 per tonne from US$243. These market conditions underscore the importance of the company’s cost reduction initiatives and operational efficiencies.
Financially, the company ended the quarter with US$7.4 million in available cash and facilities, down from US$9 million previously. Notably, Kinetic Development Group Limited injected US$10 million through share subscriptions during the quarter, bolstering liquidity. MC Mining also continued repayments on its Industrial Development Corporation loan, reflecting disciplined financial management.
Corporate Governance and Outlook
Corporate governance saw changes with the appointment of two new non-executive directors, Wang Lanlan (Lily) and Dr Huoxin Wang (Hevin), alongside the resignation of An Chee Sin. These board changes may signal a strategic refresh as the company navigates a challenging coal market.
Looking ahead, MC Mining’s focus remains on advancing the Makhado Project to commissioning, implementing the Uitkomst turnaround plan, and prioritizing development of satellite projects within the Greater Soutpansberg area. The company’s ability to manage costs and secure stable coal prices will be critical to sustaining momentum.
Bottom Line?
MC Mining’s disciplined operational and financial progress sets the stage for critical milestones ahead, but coal market volatility remains a key challenge.
Questions in the middle?
- How will MC Mining manage coal price volatility impacting revenue and margins?
- What are the risks to the Makhado Project’s December 2025 commissioning timeline?
- How effective will the Uitkomst turnaround plan be in stabilizing long-term earnings?