MC Mining reaps the benefit of favourable coal prices

MC Mining says it has made very pleasing progress during the last four months. This includes securing the standby loan facility which ensured the Company had sufficient liquidity while it builds-up inventory prior to accessing international thermal coal markets. This has been achieved by reaping the benefit of coal prices which remain favourable due to geopolitical events and the global energy shortage.

Godfrey Gomwe, Managing Director and Chief Executive Officer, commented: “The Company has also enhanced the Makhado Bankable Feasibility Study, ensuring we have assessed opportunities to maximise the Project’s economic returns. Once developed, Makhado is expected to be South Africa’s pre-eminent coking coal mine and would replace a significant amount of imported hard coking coal. MC Mining continues to explore potential marketing strategies for Makhado’s coal while the composite funding package for the development of the Project is being concluded. We are planning to commence with certain early-works activities at Makhado later in CY2022 and funding dependent, construction is planned to commence in early CY2023.”

MC Mining also has interests in various exploration assets in the Limpopo province, including the three project areas comprising the GSP, namely Chapudi, Generaal and Mopane. These are all longer-term development opportunities and the Company is in the process of re-assessing the carrying values of these projects given their longer-term development horizons and the current focus on other projects.