MC Mining reports strong safety performance and steady progress on its flagship Makhado coal project, while Uitkomst Colliery implements a turnaround plan amid production setbacks. Cash reserves have strengthened following significant share subscription payments.
- Makhado Project commissioning set for December 2025 despite delays
- Uitkomst Colliery production down 21% quarter-on-quarter, turnaround plan underway
- No lost time injuries recorded across operations this quarter
- Cash and facilities increased to US$13.1 million after share subscription payments
- Corporate leadership changes include appointment of new CEO and Non-Executive Director
Safety and Operational Highlights
MC Mining Limited has reported a quarter free of lost time injuries (LTI) across its operations, underscoring a continued commitment to workplace safety. The Makhado steelmaking hard coking coal project has now achieved an impressive 911 days LTI-free, reflecting strong health and safety management as construction advances. Similarly, the Uitkomst Colliery recorded 228 days without LTIs, signaling improved operational discipline.
Progress at Makhado Project
Despite some construction delays caused by weather and supply chain challenges, the Makhado Project is on track to commence commissioning of its coal handling and preparation plant by December 2025. The project, poised to become South Africa's largest hard coking coal producer, has completed foundational civil works and begun open pit mining activities, including the first in-pit blast. The 14km overhead power transmission line construction is progressing steadily, ensuring power supply readiness for operations.
Uitkomst Colliery Turnaround Underway
Uitkomst Colliery experienced a 21% decrease in run-of-mine coal production compared to the previous quarter and an 8% decline year-on-year, attributed to geological challenges and the delayed start of a comprehensive turnaround plan. This plan, approved and now being implemented with specialist engineering support, focuses on cost reductions and improving equipment availability. Encouragingly, coal plant yields improved to 73%, partially offsetting production declines. Management anticipates production improvements in the coming quarter as operational changes take effect.
Financial Position and Corporate Developments
MC Mining's liquidity strengthened significantly during the quarter, with available cash and facilities rising to US$13.1 million, boosted by US$15 million in share subscription payments from Kinetic Development Group Limited. The company also made a further repayment of ZAR10 million towards its loan with the Industrial Development Corporation. On the leadership front, Christine He was permanently appointed as Managing Director and CEO, while Jianheng (Albert) Deng joined as a Non-Executive Director, replacing Zhen (Brian) He who resigned.
Outlook and Strategic Focus
Looking ahead, MC Mining remains focused on commissioning the Makhado Project and advancing the Greater Soutpansberg Projects as a pipeline for future steelmaking coal production. The Vele Colliery remains suspended pending a re-engineered business plan and logistics solution. The company continues to maintain strong environmental and regulatory compliance across its operations, positioning itself for sustainable growth amid volatile coal markets.
Bottom Line?
MC Mining’s next quarters will test the success of Uitkomst’s turnaround and Makhado’s commissioning amid ongoing market pressures.
Questions in the middle?
- Will the Uitkomst Colliery turnaround plan deliver the expected production recovery in Q4 2025?
- How will ongoing coal price volatility impact MC Mining’s revenue and project economics?
- What are the timelines and capital requirements for expanding production beyond Makhado’s foundation phase?