MC Mining produces 6% less coal in its half-year period
MC Mining Limited in its interim financial report for the six months ended 31 December 2020, highlights the following:
- 127,534 tonnes of high quality metallurgical and thermal coal were sold during the Period (FY2020 H1: 147,234t);
- An additional 11,569t of high-ash middlings were sold during the Period (FY2020 H1 14,587t);
- At the end of March 2020, the South African Government implemented nationwide Covid-19 Level 5 lockdown restrictions, resulting in Uitkomst metallurgical and thermal coal mine being placed on care and maintenance;
- In July 2020, mining at the Uitkomst Colliery started to ramp up. However, high levels of absenteeism due to Covid-19 preventative measures resulted in coal production for the Period reducing to 246,229t compared to 262,696t in H1 FY2020, a 6% decline;
- The world-wide Covid-19 economic downturn led to a significant decline in international coal prices, which did not show signs of recovery until November 2020;
- A number of Uitkomst’s customers suspended operations to comply with lockdown regulations which negatively impacted Uitkomst coal sales;
- Covid-19 restrictions continued to impede activities at the Company’s other projects, being the Makhado hard coking coal project, Vele semi-soft coking and thermal coal colliery and Greater Soutpansberg Projects (collectively,the Limpopo Projects), which remain in various stages of development;
- Following the implementation of a safety programme during the Period, the Uitkomst mine reported an improved safety record with four lost-time injuries (“LTIs”) during the Period (FY2020 H1: seven LTIs); and
- The Company recorded 27 positive Covid-19 cases at Uitkomst and zero cases at the Limpopo Projects during the Period.
