16th Apr 2019 09:53
LONDON (Alliance News) - MC Mining Ltd on Tuesday said it has signed an agreement for the export of thermal coal, which will be produced by the first phase of the Makhado hard coking & thermal coal project, located in South Africa.
The dual-listed exploration and development company did not disclose the partner, but said it is a producer and marketer of bulk commodities.
MC Mining's subsidiary, Baobab Mining & Exploration Pty Ltd, the owner of the Makhado project, expects the nine-month phase one construction period to begin in the third quarter of 2019.
The company estimates that phase one will generate three million tonnes per annum of coal from the west pit, which will undergo preliminary processing at the mine.
The coal then will be transported and sold to Limpopo Coal Co Pty Ltd, a subsidiary of MC Mining, which will, with its modified plant, complete the final processing producing up to 570,000 tonnes per year of export quality thermal coal and 540,000 tonnes annualy of hard coking coal.
Meanwhile, the construction of phase two of the Makhado project, planned in 2022, is expected to produce 4 million tonnes per annum of coal from the east and central pits.
"The signing of this agreement is a further significant step in the advancement of Makhado," said Chief Executive David Brown.
"The phased development of the Makhado project will generate a significant number of employment opportunities in the Limpopo province and the export of the thermal coal utilises previously tested logistics infrastructure," added Brown.
MC Mining shares were trading 5.5% higher on Tuesday in London at 48.00 pence each, while in Johannesburg shares were down 8.1% at ZAR9.56 each.
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