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africa|coal|composite|construction|mining|project|underground|maintenance|operations

MC Mining halts mining

27th March 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Coal miner MC Mining has suspended production at its South African coal operations, as a 21-day nationwide lockdown comes into effect.

“MC Mining supports all measures to limit the impact of Covid-19 and the lockdown has impacted our Uitkomst Colliery, as well as our corporate office and project sites,” said CEO Brenda Berlin.

The ASX-listed company said on Friday that its Uitkomst Colliery would be placed on care and maintenance during the lockdown period, and the scaled-back operation would be monitored and managed during the period.

Berlin pointed out that the Uitkomst Colliery was a mechanised underground operation, and upon completion of the lockdown period, it would be possible to ramp up to steady state production levels within a relatively short timeframe.

However, given the continued uncertainty around the outlook for control of the coronavirus in South Africa, the production guidance for 2020 has been suspended.

“We anticipate that activities at all of the sites will resume as soon as it is safe to recommence. Discussions with potential funders for Phase 1 of our flagship Makhado hard coking coal project will continue during the lockdown period,” Berlin added.

“The company still aims to finalise the composite debt/equity package for Phase 1 during the first half of 2020 with construction commencing later this year.”

Edited by Creamer Media Reporter

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