28th Jul 2022 12:23
MC Mining Ltd - Western Australia-based coal miner with projects in South Africa - Signs coal sales & marketing deal with Overlooked Collieries Pty Ltd, under a contract to last until end of December. Under the deal, the agreement will facilitate the sale of at least 20,000 tonnes of coal from Uitkomst colliery per month at API4-linked coal prices, with Overlooked taking charge of transportation, stockpiling and export of the coal.
Overlooked will charge marketing fee of 5% of the sale price.
The deal follows a review by MC Mining of its marketing arrangements following thermal coal prices rising to record highs due to "anti fossil-fuel sentiment", the invasion of Ukraine and sanctions against Russia, leading to an energy shortage.
"The colliery does not produce sufficient coal to fill a ship on a monthly basis and a partnership with Overlooked will facilitate more frequent shipments at higher international thermal coal prices," says Chief Executive Officer Godfrey Gomwe.
Also on Thursday, MC Mining says it continues to advance the funding process for the Makhado hard coking coal project, and expects to conclude the process by the third quarter of 2022.
Current London stock price: 13.33 pence, down 8.1%
12-month change: up sharply from 5.00p
Current Johannesburg stock price: ZAR3.10, down 18%
12-month change: up sharply from ZAR1.23
By Dayo Laniyan; [email protected]
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