MC Mining reported continued progress at its Makhado steelmaking hard coking coal project during the quarter ending December 31, 2025, despite ongoing production challenges and declining cash at Uitkomst Colliery. Key milestones at Makhado included ongoing development, equipment installation, and preparations for plant commissioning, with commissioning activities set for March.
The Makhado project achieved 1,005 days without a lost-time injury (LTI), while Uitkomst recorded one LTI. Operational performance at Uitkomst lagged, and production fell 30% from the previous quarter and 40% year-on-year to 57,606 tons, due to delayed turnaround efforts, adverse geological conditions, and aging equipment. Coal sales also declined 34% compared to last year. However, coal plant yields remained high at 79.7%.
At Vele Aluwani colliery, MC Mining conducted evaluations of geological and mine planning data, and negotiations over land access continued for projects in Greater Soutpansberg. Market conditions were tough, with thermal coal prices dropping to $86/t and premium hard coking coal averaging $199/t.
Financially, available cash fell to $2.9 million, down from $13.2 million last quarter. Kinetic Development Group paid $7 million for shares under the subscription agreement, and MC Mining repaid R10 million on an IDC loan. Board changes included the appointment of Jianheng Deng as nonexecutive director, and the resignation of Zhen He.