MC Mining has announced that the Industrial Development Corporation of South Africa Limited (IDC) has extended the date for repayment of the R160 million loan ($10.3 million) plus interest thereon and the terminal drawdown date of the additional R245 million ($15.8 million) loan facility for the development of Phase 1 of the Makhado hard coking coal project, to 30 November 2022. Drawdown of the additional R245 million ($15.8 million) loan facility remains subject to the IDC confirming its due diligence.
As previously announced, repayment of the R160 million loan plus accrued interest was due by 31 January 2022. The IDC which holds a 6.7% equity in Baobab Mining & Exploration (Pty) Ltd (a subsidiary of MC Mining), remains committed to the Company’s growth.
Makhado has a life of mine in excess of 46 years and robust fundamentals, resulting in compelling economics. The phased development of Makhado will position MC Mining as South Africa’s preeminent hard coking coal producer and is expected to deliver positive returns for shareholders.
The Company is progressing with securing the funds required to develop the project creating creating some 650 permanent job opportunities and which will reduce the volumes of hard coking coal South Africa currently imports.