MC Mining lifts coal output, sales in December quarter
The slowdown in the global economy during 2019 continues to adversely affect metallurgical coal markets, but ASX-, Aim- and JSE-listed MC Mining says prices have improved following the quarter ended December 31.
Premium hard coking coal (HCC) prices were at an average of $139/t during the December quarter, compared with $223/t in the three months ended December 31, 2018.
MC Mining points out that HCC prices increased to $149/t in January.
Additionally, the company notes that growing international demand for South African thermal coal had resulted in more favourable prices for coal from the Uitkomst colliery, with average thermal coal prices improving from $61/t in the quarter ended September 30, 2019, to $76/t during the quarter ended December 31.
Uitkomst’s metallurgical and thermal coal sales increased by 24% to 84 578 t in the quarter ended December 31, 2019, compared with the 68 359 t sold in the quarter ended December 31, 2018.
However, the price was still lower than the thermal coal price of $96/t recorded in the quarter ended December 31, 2018.
Nonetheless, MC Mining reported on Tuesday that its Uitkomst colliery had generated pleasing results for the quarter under review, with a change of mine management and optimisation initiatives having been implemented at the colliery during the period.
Meanwhile, the company is also progressing the remaining Phase 1 funding requirements for its fully permitted Makhado project, which should be completed before June this year.
Construction on the project is expected to start during the second half of this year.
The company’s Vele semi-soft coking and thermal coal colliery remains on care and maintenance, but the Vele processing plant is expected to be recommissioned as part of Phase 1 of the Makhado project.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation