MC Mining CEO Godfrey Gomwe
The implementation of a turnaround plan at the Uitkomst Colliery during June yielded pleasing results for MC Mining in the quarter ended September 30, MD and CEO Godfrey Gomwe says.
This resulted in a 10% year-on-year increase in the operation's run-of-mine coal production to 139 192 t.
Gomwe points out that the increase in production was achieved despite the increased incidents of electricity blackouts implemented by power utility Eskom.
"Production at the underground colliery was impacted by the extended travel time to the mining areas and the optimisation initiative, which includes a change in the shift system, resulted in increased mining time, yielding higher volumes of coal," he comments.
Uitkomst sold 100 449 t of coal during the quarter under review, comprising 100 074 t of high-grade domestic coal sales and 375 t of lower-grade middlings coal.
JSE-, ASX- and Aim-listed MC Mining also continued with the Makhado project's composite funding initiatives during the quarter, including progressing the detailed designs for the coal handling and processing plant and related infrastructure in preparation for procurement.
This information is required by potential funders and MC Mining anticipates that the funding will be concluded in the first half of the 2024 calendar year, with construction to start soon thereafter.
Further, the ramp-up of operations at the outsourced Vele Colliery continued during the quarter, with the contractor Hlalethembeni Outsourcing Services expected to be at full production during the fourth quarter of the 2023 calendar year.