30th Oct 2020 11:33
(Alliance News) - MC Mining Ltd on Friday said coal production at its South African mine increased in the third quarter of 2020 but sales reduced due to operating challenged faced by its larges client.
The producer of thermal and coking coal said Uitkomst, which is located on in South Africa, generated 137,284 tonnes of run-of-mine coal in the three months to the end of September compared to 135,675 tonnes a year earlier, a 1% improvement.
Coal sales were 25% lower than a year earlier, at 57,616 tonnes versus 77,243 tonnes year-on-year.
MC Mining explained that Uitkomst produces high-grade metallurgical, thermal and high-ash middlings coal and the colliery's largest customer, experienced operational challenges at its Newcastle furnaces during September, which limited volumes purchased from Uitkomst.
"The progressive easing of lockdown measures, allowed the Uitkomst Colliery to return to steady-state production, while international coal prices trended positively during September and October," said Chief Executive Brenda Berlin.
MC Mining shares were trading 10% lower in London on Friday at 6.30 pence each, while in Johannesburg, the stock was up 36% at ZAR2.10 a share.
By Evelina Grecenko; [email protected]
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