MC Mining making strides at Makhado, while Uitkomst remains suspended
Construction activities at coal asset developer MC Mining's Makhado hard coking coal project, in Limpopo, South Africa, has regained momentum following weather-related interruptions at the start of this calendar year, with hot commissioning of the coal handling and processing plant (CHPP) scheduled for May.
The ASX-, Aim- and JSE-listed company points out that project delays during the quarter ended March 31 were largely attributable to inclement weather and delays in commissioning of the Eskom power supply line.
Nevertheless, the company was able to deliver on project development milestones for what will be South Africa's largest hard coking coal producer once steady-state operation is reached. The Makhado colliery has been designed to produce about 800 000 t/y of coal and has a 28-year mine life.
The mining of overburden material from the opencast pit is in progress and on track for run-of-mine (RoM) delivery to the CHPP when it is started up.
JCI Mining, the principal mining contractor, now has 249 people on site, with a mining fleet consisting of eight backhoe configured excavators, supported by a team of 33 articulated dump trucks. Mining of overburden material is progressing steadily, with over 1.3-million bench cubic metres already mined.
Meanwhile, MC Mining continues to evaluate strategic options to unlock value and preserve future optionality from its Uitkomst Colliery, following the temporary suspension of mining and processing operations from March 1. The company is considering possibly partnering with third parties at Uitkomst in future.
A broader review of the company's asset base, with a view to disposing of redundant or noncore items where appropriate, is also ongoing.
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