https://www.miningweekly.com
Africa|Coal|Construction|Exploration|Industrial|Mining|PROJECT|Steel
Africa|Coal|Construction|Exploration|Industrial|Mining|PROJECT|Steel
africa|coal|construction|exploration|industrial|mining|project|steel

MC secures funding for Makhado Phase 1 construction

MC CEO David Brown

MC CEO David Brown

Photo by Creamer Media's Dylan Slater

15th July 2019

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

The Industrial Development Corporation of South Africa’s (IDC’s) credit committee has approved a R245-million loan facility for ASX-, Aim- and JSE-listed MC Mining for the construction of Phase 1 of its Makhado hard coking coal project, in South Africa’s Limpopo province.

The term loan reaffirms the economics of the Makhado project and follows the conclusion of offtake agreements for the coal to be produced by Phase 1, MC said on Monday.

The loan will be used to develop the west pit at Makhado and modify the existing Vele Colliery processing plant, with construction expected to take nine months. First coal production will start thereafter.

“The approval of the IDC funding is a positive step for the development of MC Mining’s flagship Makhado project.

“The company is positioned to become South Africa’s pre-eminent producer of high-grade metallurgical coal with long-term hard coking coal markets supported by growing global steel demand, driven by economic development and urbanisation,” MC CEO David Brown commented.

Drawdown of the loan can take place any time before June 30, 2021.

Capital repayment will start 24 months after the first drawdown and the amount is repayable in 20 equal quarterly instalments.

The Makhado project is 69% owned by MC Mining’s subsidiary Baobab Mining & Exploration. The IDC holds a 5% interest, seven local communities a 20% interest and a black industrialist the remaining 6%.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.15 0.185s - 89pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: