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.