The Industrial Development Corporation (IDC) of South Africa has extended MC Mining’s date for repayment of a R160-million loan and accrued interest to November 30, after it fell due for payment on January 31.
Additionally, the terminal drawdown date for an additional R245-million has been extended to the same date, should MC Mining decide to proceed with a due diligence for the loan.
The funds are being used to develop Phase 1 of the Makhado hard coking coal project, in Limpopo.
The project is expected to have at least a 46-year mine life and compelling economics. MC Mining says the phased development of Makhado will position the company as South Africa's pre-eminent hard coking coal producer and reduce the country’s reliance on hard coking coal imports.
IDC says it remains committed to MC Mining’s growth, and it remains a 6.7% shareholder in a subsidiary of MC Mining, Baobab Mining & Exploration.
Meanwhile, MC Mining’s Uitkomst colliery produced 107 188 t of run-of-mine coal in the quarter ended December 31, a 2% decrease on the 108 945 t produced in the quarter ended December 31, 2020.
The company attributed the decrease in production to the suspension of mining for three shifts following production constraints at the colliery’s explosives supplier.