MC Mining: Makhado hard coking coal Project continues on schedule
In its Activities Report for the quarter ended 30 June 2025 (FY2025 Q4), MC Mining reports that health and safety performance across the group improved, with the Company having operated with no lost time injuries (LTI) for the quarter. The Makhado steelmaking hard coking coal Project has now reached 817 days LTI-free, for 556,000 manhours worked, whilst Uitkomst steelmaking coal Colliery (Uitkomst Colliery or Uitkomst) reached 136 days LTI-free.
Development of the Makhado Project continued on schedule, with commissioning of the coal handling and preparation plant (CHPP or Coal Plant) expected by December 2025, the principal mining contractor being appointed and commencing with site establishment, procurement activities for the Coal Plant reaching factory acceptance testing stage for critical equipment, significant progress being made towards the commissioning of the 14km overhead power transmission line and work on the permanent bridge to access the project site having commenced;
The operational improvement plan for Uitkomst Colliery (Turnaround Plan) was completed and is set to be in full implementation during the coming quarter, with a specialist mining engineering and consultancy firm, Metalla Tutum Engineering Proprietary Limited (MTE), co-opted to assist with the implementation. The Turnaround Plan should see an improvement in cost, stabilise earnings and result in operating efficiencies at the mine.
Run-of-mine (ROM) coal production from Uitkomst Colliery improved 3% on the previous quarter’s production, though was 9% lower than the June 2024 quarter at 104,129 tonnes (t) (FY2024 Q4: 113,977t). The reduction in production, compared to 2024, was due to disruptions in production whilst reconfiguring underground layouts as part of the Turnaround Plan and also due to lower-than-expected coal seam mining heights in some areas of the mine;
Uitkomst Colliery sold 68,020t of high-grade coal during the quarter (FY2024 Q4: 62,274t), a 9% increase on 2024 sales, and had no sales of the lower grade middlings coal (FY2024 Q4: 10,099).
Coal plant yields remained high at 69% due to operational improvement initiatives over the period, which offset the lower ROM coal production to result in improved sales volumes;
Limited activities were undertaken at the Company’s Vele Aluwani semi-soft coking coal (SSCC) and thermal coal (TC) Colliery (Vele Colliery or Vele), whilst the numerous coal deposits within the Greater Soutpansberg Projects (GSP) were evaluated and prioritised for development; and
Depressed TC prices continued with average prices of US$90/t for the three months, compared to US$96/t in Q3 FY2025 and US$108/t in Q4 of FY2024. Premium steelmaking HCC prices have decreased, averaging US$184/t in the quarter compared to US$243/t in FY2024 Q4.
