Wedoany.com Report-Nov. 3, MC Mining reported steady progress in developing the Makhado project in Limpopo during the quarter ended September 30, achieving key milestones despite some construction delays. The company confirmed that commissioning activities for the coal handling and preparation plant are scheduled to begin by December, while the principal mining contractor has commenced open-pit mining at the boxcut site.
The Uitkomst Colliery
Civil foundational works for the coal plant have largely been completed, and significant progress has been made toward commissioning the 14 km overhead power transmission line. MC Mining also announced that the operational improvement plan for Uitkomst Colliery, known as the turnaround plan, was approved and is being implemented. Efforts are currently focused on increasing production through better equipment availability and utilisation, with improved output expected in the final quarter of 2025.
Run-of-mine (RoM) coal production at the Uitkomst Colliery in KwaZulu-Natal decreased by 21% compared with the previous quarter and by 8% year-on-year, reaching 82,588 tonnes. The decline was attributed to delays in initiating the turnaround plan, geological intrusions, and temporary equipment unavailability due to extensive repair and refurbishment activities. Despite lower production, coal plant yields remained strong at 73%, supported by operational improvement initiatives that helped offset reduced RoM volumes.
During the quarter, Uitkomst Colliery sold 47,116 tonnes of high-grade coal, a 1% decrease from the previous year. No sales of lower-grade middlings coal were recorded. MC Mining added that cost reduction measures are being realised, contributing to improved operational efficiency.
At the company’s other operations, limited activity was recorded at the Vele Aluwani semi-soft coking coal and thermal coal colliery. Meanwhile, the Greater Soutpansberg projects’ multiple coal deposits were evaluated and prioritised for future development.
Global market conditions continued to exert pressure on thermal coal prices, which averaged $91 per tonne for the quarter, slightly higher than $90 per tonne in the previous quarter but below $110 per tonne in the same period of financial year 2025. Prices for premium steelmaking hard coking coal also declined, averaging $185 per tonne compared with $212 per tonne earlier in the year.
MC Mining reported available cash and facilities totaling $13.2 million at the end of the period. Kinetic Development Group (KDG) made payments totaling $15 million for the purchase of MC Mining shares as part of a share subscription agreement, with $5 million related to the fourth second closing and $10 million to the fifth second closing. The company also repaid R10 million toward its loan with the Industrial Development Corporation during the quarter.
In terms of leadership changes, MC Mining appointed Yi (Christine) He as Managing Director and CEO, and Jianheng (Albert) Deng as a nonexecutive director. At the same time, Zhen (Brian) He resigned from his position as nonexecutive director. The company said these appointments reflect its ongoing commitment to advancing its coal mining projects and strengthening corporate governance.
