PERTH (miningweekly.com) – South Africa-focused coal miner MC Mining has secured a R20-million facility from South African financial services provider ABSA Bank for its Uitkomst colliery, to fund a potential expansion of operations.
Uitkomst transitioned to an owner-operated mine in August this year, with the acquisition of the independent underground mining contractor’s business operations, which included mining equipment and the transfer of approximately 340 contractor employees.
MC Mining in August also secured a five year, R15-million asset finance facility from ABSA, used to finance new underground mining equipment.
The miner said on Wednesday that the cash flows generated by Uitkomst are greater than envisaged when the colliery was acquired in June 2017, and the new facility will be used to fund short-term working capital requirements and potential expansion opportunities.
“The facility further enhances our relationship with ABSA and is an endorsement by an independent financial institution of the potential of Uitkomst colliery and its ability to deliver on tonnage targets coupled with prevailing favourable coal prices,” said MC Mining CEO David Brown.
The Uitkomst colliery currently has a remaining mine life of some 16 years, which includes a mine extension.
Meanwhile, Brown said that MC Mining is also continuing to progress with various initiatives relating to the Makhado hard coking and thermal coal project with further updates to come.