State-owned financial institution the Industrial Development Corporation of South Africa (IDC) has extended the date for coal miner MC Mining’s repayment of a R160-million loan, plus interest, and the terminal drawdown date of an additional R245-million loan facility for the development of the Makhado hard coking coal project, in Limpopo, to June 30 next year.
Drawdown of the additional R245-million loan facility remains subject to the IDC confirming its due diligence and credit approval.
MC Mining announced on January 28 that the repayment of the R160-million loan, plus accrued interest, was due for repayment by November 30.
The IDC continues to provide support for the development of MC Mining’s flagship, fully-permitted Makhado project. The IDC holds 6.7% equity in the project through its interest in MC Mining subsidiary Baobab Mining & Exploration, which is the owner of Makhado.
The Makhado project has a life-of-mine of more than 22 years. The project is expected to create an estimated 650 permanent job opportunities and reduce current imports of hard coking coal into South Africa.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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