5th May 2020 11:35
(Alliance News) - MC Mining Ltd said Tuesday its Uitkomst metallurgical and thermal coal mine in South Africa will see its production ramped up to 50% within the next 7 to 10 days.
Uitkomst was placed into care and maintenance due to the national lockdown in South Africa, but this has now been eased.
"During this period the colliery will assess the effects that the lockdown has had on critical suppliers while the coal off take market remains challenging due to the restrictions imposed on businesses. Uitkomst is in constant communication with its customers to ensure their requirements are met and the colliery is only expected to return to full operating capacity following further reductions in the national coronavirus alert assessments and once coal off-takes have normalised," MC Mining said.
The lockdown has also stopped production at the Makhado, Vele and Greater Soutpansberg projects, MC Mining noted.
Chief Executive Brenda Berlin said: "The move to lockdown level 4 facilitates Uitkomst resuming production of its high-grade coal, albeit at 50% of normal production. Safety of our people is critical and normalised operating activities at the Uitkomst Colliery and MC Mining's other sites will only resume when it is safe to do so and in line with Government regulations.
"Where possible, key activities for rest of the group will continue remotely in isolated, safe environments and we remain very mindful of the economic toll that the pandemic has on our employees and their families."
MC Mining said its available cash balance is USD1.1 million, but also has the USD6.5 million second tranche of the existing Industrial Development Corporation of South Africa Limited loan available for drawdown.
The company is also engaged in discussions with its lender group regarding drawdown from existing and potential new finance facilities. It also noted it continues to discuss with potential domestic and international capital-providers to secure the balance of funding required to commence development of Makhado Phase 1.
Shares in MC Mining were untraded in London on Tuesday at 9.48 pence each. The stock was also untraded in Johannesburg, last closing at ZAR2.00 each.
By Paul McGowan; [email protected]
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