Coal miner MC Mining’s run-of-mine (RoM) coal production at the high-grade Uitkomst metallurgical and thermal coal mine for the quarter ended March 31 was 115 44 t, 9% lower than in the quarter ended March 31, 2020.
This was primarily owing to a three-day union-led blockade at the Uitkomst Colliery in February; displays of cold and flu symptoms resulting in higher than usual employee absenteeism; and having to work through a nonproductive dyke incursion.
Uitkomst’s coal sales decreased by 15% year-on-year to 62 301 t, owing to a six-week repair and maintenance shutdown of the steelmaking plant of MC’s biggest customer.
The API4 coal price averaged $91/t during the quarter, 15% above the $79/t average in the comparative quarter of 2020. The price is forecast to remain high as the post pandemic world economic recovery fuels greater demand for coal, says MC.
Revenue per tonne increased by 4% to $71.76/t, as the higher API4 price recorded during the quarter was offset by a change in sales mix, with sales of high-value coal being proportionately lower year-on-year.
Production volumes had returned to normal by the end of the quarter and sales volumes are expected to normalise during the June quarter.
Limited activities were undertaken at the company’s Makhado hard coking coal project, the Vele semi-soft coking and thermal coal colliery and the Greater Soutpansberg projects (GSP) during the quarter.
The Industrial Development Corporation of South Africa (IDC) extended the repayment date for the R160-million outstanding loan plus accrued interest, to July 31.
The terminal drawdown date of the additional R245-million IDC term loan for the development of Phase 1 of the Makhado project, was extended to July 31, subject to the IDC re-affirming its financial due diligence.
Composite debt/equity funding initiatives for the Makhado project continued during the quarter.
The Department of Mineral Resources and Energy granted the mining right for the 74%-owned Mopane coking and thermal coal project, one of the three projects forming part of the GSP.
Nonexecutive director Sam Randazzo was appointed as interim CEO while the executive search for a permanent CEO continues.
Available cash at quarter-end was $2.3-million and restricted cash was $30 000.
Nine employees contracted the Covid-19 virus during the quarter; however, measures implemented to restrict the spread of the virus within the MC group workplace are proving successful, with no new cases reported since the quarter-end, the company says.