Australia- and Johannesburg-listed MC Mining’s Makhado steelmaking hard coking coal (HCC) project, in Limpopo, transitioned from construction into hot commissioning and operational ramp-up during the quarter ended September 30.

The company explains that the C3 commissioning of the coal handling and preparation plant (CHPP) was completed on May 22.

During the quarter under review, run-of-mine (RoM) feed, coal washing and the production of HCC and thermal coal were demonstrated, while C4 commissioning, performance testing and plant optimisation continued, with the plant remaining in the ramp-up phase at quarter end.

The foundation phase is designed to produce about 800 000 t/y of HCC at steady-state.

The company says the contiguous Greater Soutpansberg Projects (GSP) hold granted mining rights and provide potential longer-term development optionality.

The Makhado project progressed through hot commissioning and operational ramp-up during the quarter. Critical support services and pit-to-port logistics were commissioned and tested, while C4 completion, performance testing and the close-out of remaining infrastructure continued.

Mining and coal extraction continued from the East Pit to support CHPP commissioning and ramp-up. At the end of the quarter, the mine recorded about 99 777 t of RoM stockpiles, with about 43 720 t of product.

Additionally, MC Mining notes that the 14 km, 22 kV Paradise overhead power line and the principal support services required for commissioning were in place during the quarter.

Moreover, the eastern wellfield bulk water system supplied process water to the CHPP, while work on the remaining water and associated infrastructure continued.

Pit-to-port logistics were commissioned and tested. Two 80 t certified weighbridges were operational and 4 846 t of HCC were delivered to the Matola port during the quarter.

The CHPP demonstrated washing capacity of about 7 600 t/d and produced HCC at about 10% ash during commissioning. MC Mining says plant optimisation, performance testing and completion of outstanding infrastructure remained key priorities at quarter end.

The company says it will finalise the funding requirements and complete C4 commissioning, performance testing and plant handover; close out the remaining infrastructure; optimise mining and CHPP performance; improve product yields and volumes; and establish sustainable revenue generation during the ramp-up phase.

Meanwhile, MC Mining says operations at the Uitkomst Colliery in Newcastle, KwaZulu-Natal, remain suspended. During this period, the company says it is evaluating strategic options aimed at unlocking value and preserving future optionality.

Operations at the Vele Aluwani semi-soft coking coal and thermal coal colliery also remain suspended pending the conclusion of a re-engineered business plan. The company says work continues on investigating a commercially viable logistics solution for the colliery’s coal products.

The company’s available cash balance and facilities as at September 30 was $170 000.

Subsequent to the end of the quarter, MC Mining notes that sales agreements were entered into for all the finished product on the floor and at the port for about 46 000 t.