Wrap Text
Activities Report for the quarter ended 31 March 2025 (FY2025 Q3) for MC Mining Limited and its Subsidiary Companies
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT
30 April 2025
ACTIVITIES REPORT FOR THE QUARTER ENDED 31 MARCH 2025 (FY2025 Q3) FOR MC MINING LIMITED (MC Mining or the Company)
AND ITS SUBSIDIARY COMPANIES
HIGHLIGHTS
Operations
• Health and safety continue to be a priority, with the goal being to achieve zero harm. The
Makhado steelmaking hard coking coal (HCC) project (Makhado Project or Makhado) achieved a
lost time injury (LTI) free quarter and has now reached 727 days LTI-free, for 376,000 manhours.
Unfortunately, Uitkomst steelmaking coal mine (Uitkomst Colliery or Uitkomst) sustained four
LTIs (FY2025 Q2: one LTI) during the quarter, prompting an increase in intervention measures
already in implementation;
• Makhado achieved significant development milestones towards commissioning of the coal
handling and preparation plant (CHPP or coal preparation plant) by December 2025, with
construction of the CHPP being started, construction power in place with over 14km of overhead
power lines erected and the temporary access bridged to the project site now serviceable;
• Run-of-mine (ROM) coal production from the Uitkomst steelmaking and thermal coal (TC) mine
(Uitkomst Colliery or Uitkomst) was 13% lower than the March 2024 quarter at 101,101 tonnes
(t) (FY2024 Q3: 115,909t), with the reduction in production due to lower-than-expected coal seam
widths and lower mining fleet availability;
• Uitkomst sold 56,320t of high-grade coal during the quarter (FY2024 Q3: 75,590t) and no sales of
lower grade middlings coal (FY2024 Q3: nil). Coal preparation plant yields improved due to
operational improvement initiatives from 60% to 73% over the period to help ameliorate some of
the lower ROM coal production;
• Limited activities were undertaken at the Company's Vele Aluwani semi-soft coking coal (SSCC)
and TC colliery (Vele Colliery or Vele) and Greater Soutpansberg Projects (GSP); and
• Depressed TC prices continued with average prices of US$96/t for the three months, compared to
US$110/t in Q2 FY2025 and US$97/t in Q3 of FY2024. Premium steelmaking HCC prices have
decreased, averaging US$187/t in the quarter compared to US$312/t in FY2024 Q3.
Corporate
• Available cash and facilities of US$9 million at the period end (FY2025 Q2: US$4 million);
• On the 23rd of January, the Shareholders passed the following resolutions to:
o Ratify the prior issue by the Company of 62,102,002 new Shares to Kinetic Crest Limited,
a wholly owned subsidiary of Kinetic Development Group Limited.
o Approve the acquisition by Kinetic Development Group Limited (and its Associates) of
such number of Second Closing Shares that will result in Kinetic Development Group
Limited (and its Associates) holding 51% of the Company's issued and outstanding Shares
and having a Relevant Interest in a total of 51% of all of the Company's issued and
outstanding Shares on the Second Closing
o Approve the acquisition by the Company of a Relevant Interest in the Second Closing
Shares on the Second Closing as a consequence of the Company's entry into the Proposed
Escrow Deed, on the terms and subject to the conditions set out in the Explanatory
Statement.
• Kinetic Development Group Limited has made payments amounting to $20,000,000 for the
purchase of the MC Mining shares as part of the share subscription agreement during the quarter.
• The Industrial Development Corporation of South Africa Limited (IDC) extended the date for
repayment of the R160 million loan plus interest thereon, to 30 June 2025, on condition that the
Company make a payment of ZAR10,000,000 to the IDC. The ZAR10,000,000 repayment was made
during the quarter.
• The company made a further repayment of ZAR100,000,000 to the IDC during the quarter.
Events subsequent to the end of the quarter
• Appointment of Wang Lanlan (Lily) as Non-Executive Director of MC Mining;
• Appointment of Dr Huoxin Wang (Hevin) as Non-Executive Director of MC Mining; and
• Resignation of An Chee Sin as Non-Executive Director of MC Mining.
DETAILED QUARTERLY OPERATIONS REPORTS
Makhado HCC Project – Soutpansberg Coalfield, Limpopo Province, South Africa (67% owned)
Project Overview. Commissioning of the Makhado colliery, which is set to produce steelmaking HCC
as the primary product, remains a key focus for the Company. The colliery is being built to ramp up
HCC sales from a production rate starting at 400,000 tonnes per year and increasing to 800,000 tonnes
per year, at steady-state. The current life-of-mine (LOM) is planned to be 28 years. Commissioning of
the CHPP is scheduled for December 2025. The colliery will be the pre-eminent HCC producer in South
Africa, which currently imports most of its HCC needs. Makhado achieved significant development
milestones for the quarter and maintained a great safety, health and environmental well-being
performance record.
Health, Safety and Environmental Performance. Makhado achieved another quarter free from
sustaining any LTIs (FY2025 Q2: nil), at a time where total hours worked for the project exceeded
376,000 manhours and cumulative days free of LTIs reached 727. Approximately 240 people are now
onsite, of which 170 are from the communities neighbouring the project site. Makhado continued to
be built with no reportable environmental incidents experienced. Ten heritage sites were assessed
and catalogued. Visits by officials from the Department of Water and Sanitation (DWS), the
Department of Forestry, Fisheries and the Environment (DFFE) and the Department of Minerals and
Energy (DMRE) were accommodated with no non-conformances being noted. The Company
continues to promote collaborative and constructive relationships with regulatory authorities and
host community stakeholders.
Project Development Milestones Achieved. Project development is on schedule and expenditure as
budgeted, with the following key milestones having been achieved for the quarter:
- Award of the build, own, operate and transfer (BOOT) contract for the CHPP to Environmental
and Process Technologies Proprietary Limited (Enprotec) – Enprotec have designed and are
now constructing the 400 tonnes per hour coal preparation plant. The CHPP will produce a
primary product of HCC (CSR 64, Ash 10%) and a secondary product of API4 5,500kcal TC.
- Plant terrace Area 1 construction handover – The completed plant terrace over Area 1,
constructed by Edwin Construction Pty Ltd (Edwin), will be the platform on which the main
components of the coal preparation plant (DMS, spirals and flotation segments) will be
located. Handover of the terrace allows for the CHPP construction to commence;
- Commencement of construction works on the CHPP – Enprotec have mobilized and established
on site. They have now commenced with the construction of the CHPP, due for commissioning
by year-end 2025;
- Completion of the temporary access bridge; - A temporary access bridge across the Mutamba
River is now trafficable and allows access to the project site for construction works. The bridge
and various civil works are being undertaken by Edwin. Work will now begin on the
permanent bridge crossing the same river.
- Construction power reticulation – Approximately 14 km of 22kV overhead power transmission
lines (OHLs), some of which will reticulate 750kVA of construction power, are now in place
and commissioned for use. The focus will now turn to the 14km, 22kV bulk power supply OHL
to deliver 7.5MVA of power to the site from the national grid, via the nearby Paradise Power
Station. This workstream is being managed by the EHL Engineering Group (EHL) on an EPC-
turnkey basis.
- Establishment of construction refueling facilities – Engen South Africa have established diesel
storage and dispensing facilities on site to service the project phase of the venture. The
permanent refueling facilities are yet to be procured and constructed.
- Advancement of box cut definition drilling program – Grade control drilling, to better define
the coal in the box cut of the East Pit area was completed in December 2024. Preliminary
evaluation of the results indicates the potential to be able to exploit an additional seam, over
and above the planned 5 coal seams targeted in the life of mine plan.
- Site Support services established – Communications infrastructure has been upgraded, site
access control reinforced, and emergency preparedness improved, to ensure safe and secure
operations as activities increase.
Outlook. Construction work and operational readiness activities are ongoing, with the award of the
mining contract and establishment of the mining contractor onsite set to occur during the coming
quarter.
Uitkomst steelmaking coal Colliery – Utrecht Coalfields, KwaZulu Natal Province, South Africa (84%
owned)
Colliery Overview. Uitkomst mining operations continued to focus on implementation of operational
and health and safety improvement initiatives. Concurrently, intensive re-engineering and operational
reviews are underway, that aim to improve overall performance of the venture, given the low coal
price environment for a mature mine that hosts significant high quality coal reserves. Coal preparation
plant yields improved significantly over the quarter, from 60% to 73%, though these gains were offset
by lower than planned ROM coal tonnes mined.
Health, Safety and Environmental Performance. The operations had a quarter free of reportable
environmental incidents. Unfortunately, four LTIs (FY2025 Q2: one LTI) were sustained during the
period. Post-incident investigations produced a list of remedial initiatives being implemented as part
of operational improvement efforts in progress. These initiatives include specialized supervisor
training and behaviour-based safety principles realignment sessions, amongst the further technical
and engineering initiatives being considered.
Production Performance. The colliery mined 101,101t of ROM coal during the quarter (FY2024 Q3:
115,909t). The 13% decrease in ROM coal production was largely due to lower coal seam heights than
was expected in one section and low availabilities achieved by key underground mobile mining
equipment. Outlook is for an improvement in seam heights as the operating sections move through
the low seam zones over the next quarter. Underground mining fleet condition assessments are being
undertaken during the coming quarter, with improvement plans to be implemented from the quarter
following next. Root cause analysis systems and increasing scheduled maintenance hours are already
being implemented. Modifications to the coal preparation plant in combination with more coal being
mined from higher yielding sections of the mine saw plant yields improve throughout the progression
of the quarter from 60% to 73%.
Uitkomst sold 56,320t (FY2024 Q3: 75,590t) of high-grade duff and peas coal. The colliery sold no
middlings coal during the three months (FY2024 Q3: nil). The colliery had 7,210t (FY2024 Q3: 5,763t)
of high-grade coal inventory at the end of March 2025.
The production costs per saleable tonne were 33% higher than the comparative period (FY2025 Q3:
US$93/t vs. FY2024 Q3: US$69/t). The decline in production volumes resulted in the increase of the
production costs.
Outlook. The focus remains on formulating initiatives to reduce unit operating costs. Metalla Tutum
Engineering Pty Ltd (MTE) have been co-opted to help identify operational improvement
opportunities during the coming quarter.
Quarter to Quarter to
end-Mar end-Mar
2025 2024 %
Production volumes
Uitkomst ROM (t) 101,101 115,909 (13%)
Inventory volumes
High quality duff and peas (t) 7,210 5,763 25%
Sales tonnages
High quality duff and peas (t) 56,320 75,590 (25%)
Quarter to Quarter to
end-Mar end-Mar
2025 2024 %
Middlings sales (t) - - 0%
56,320 75,590 (25%)
Quarter financial metrics
Net revenue/t (US$) 70 80 (12%)
Net revenue/t (ZAR) 1,301 1,517 (14%)
Production cost/saleable tonne (US$)^ 93 69 33%
^ costs are all South African Rand (ZAR) based
Vele Aluwani SSCC and TC Colliery – Limpopo (Tuli) Coalfield (100% owned)
Operations at Vele remain suspended. Vele recorded no LTIs (FY2025 Q2: nil) during the quarter.
Greater Soutpansberg Project (GSP) – Soutpansberg Coalfield (74% owned)
The Greater Soutpansberg Projects recorded no LTIs (FY2025 Q2: nil) during the quarter and no
reportable activities occurred during the period. The studies required for the environmental and water
use licences are expected to commence during H2 CY2025.
Appendix 5B – Quarterly Cash Flow Report
The Company's available cash balance and facilities as at 31 March 2025 was US$9 million. The
aggregate amount of payments to related parties and their associates, as disclosed as item 6.1 of the
March 2025 quarter Appendix 5B, was US$23k, comprising executive and non-executive director
remuneration.
Christine He
Interim Managing Director and Chief Executive Officer
This announcement has been approved by the Company's Disclosure Committee.
All figures are in South African rand or United States dollars unless otherwise stated.
For more information contact:
Bill Pavlovski Company Vision Corporate bill.pavlovski@mcmining.co.za
Secretary (Pty) Ltd
Company advisers:
Marion Brower Financial PR R&A Strategic +27 11 880 3924
(South Communications
Africa)
BSM Sponsors Proprietary Limited is the nominated JSE Sponsor
A copy of the Appendix 5B can be found here: https://senspdf.jse.co.za/documents/2025/jse/isse/mcze/App_5B3.pdf
About MC Mining Limited:
MC Mining is an ASX/JSE-listed coal exploration, development and mining company operating in South Africa. MC
Mining's key projects include the Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard coking
coal), Vele Colliery (semi-soft coking and thermal coal), and the Greater Soutpansberg Projects (coking and thermal
coal).
All figures are denominated in United States dollars unless otherwise stated. Safety metrics are compared to the
preceding quarter while financial and operational metrics are measured against the comparable period in the
previous financial year. A copy of this report is available on the Company's website, www.mcmining.co.za.
Forward-looking statements
This Announcement, including information included or incorporated by reference in this Announcement, may
contain "forward-looking statements" concerning MC Mining that are subject to risks and uncertainties. Generally,
the words "will", "may", "should", "continue", "believes", "expects", "intends", "anticipates" or similar expressions
identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks
and uncertainties relate to factors that are beyond MC Mining's ability to control or estimate precisely, such as future
market conditions, changes in regulatory environment and the behaviour of other market participants. MC Mining
cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is
cautioned not to place undue reliance on these forward-looking statements. MC Mining assumes no obligation and
does not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein,
whether as a result of new information, future events or otherwise, except to the extent legally required.
Statements of intention
Statements of intention are statements of current intentions only, which may change as new information becomes
available or circumstances change.
Tenements held by MC Mining and its Controlled Entities
Change
Project during
Name Tenement Number Location Interest quarter
Chapudi Albert 686 MS Limpopo~ 74%
Project*
Bergwater 712 MS 74%
Change
Project during
Name Tenement Number Location Interest quarter
Remaining Extent and Portion 2 of 74%
Bergwater 697 MS
Blackstone Edge 705 MS 74%
Remaining Extent & Portion 1 of 74%
Bluebell 480 MS
Remaining Extent & Portion 1 of 74%
Bushy Rise 702 MS
Castle Koppies 652 MS 74%
Chapudi 752 MS 74%
Remaining Extent, Portions 1, 3 & 4 74%
of Coniston 699 MS
Driehoek 631 MS 74%
Remaining Extent of Dorps-rivier 74%
696 MS
Enfield 512 MS (consolidation of 74%
Remaining Extent of Enfield 474
MS, Brosdoorn 682 MS &
Remaining Extent of Grootvlei
684 MS)
Remaining Extent and Portion 1 of 74%
Grootboomen 476 MS 74%
Grootvlei 684 MS 74%
Kalkbult 709 MS 74%
Remaining Extent, Remaining 74%
Extent of Portion 2, Remaining
Extent of Portion 3, Portions 1,
4, 5, 6, 7 & 8 of Kliprivier 692
MS
Remaining Extent of Koodoobult 74%
664 MS
Koschade 657 MS (Was Mapani Kop 74%
656 MS)
Change
Project during
Name Tenement Number Location Interest quarter
Malapchani 659 MS 74%
Mapani Ridge 660 MS 74%
Melrose 469 MS 74%
Middelfontein 683 MS 74%
Mountain View 706 MS 74%
M'tamba Vlei 654 MS 74%
Remaining Extent & Portion 1 of 74%
Pienaar 635 MS
Remaining Extent & Portion 1 of 74%
Prince's Hill 704 MS
Qualipan 655 MS 74%
Queensdale 707 MS 74%
Remaining Extent & Portion 1 of 74%
Ridge End 662 MS
Remaining Extent & Portion 1 of 74%
Rochdale 700 MS
Sandilands 708 MS 74%
Portions 1 & 2 of Sandpan 687 MS 74%
Sandstone Edge 658 MS 74%
Remaining Extent of Portions 2 & 3 74%
of Sterkstroom 689 MS
Sutherland 693 MS 74%
Remaining Extent & Portion 1 of 74%
Varkfontein 671 MS
Remaining Extent, Portion 2, 74%
Remaining Extent of Portion 1 of
Vastval 477 MS
Vleifontein 691 MS 74%
Ptn 3, 4, 5 & 6 of Waterpoort 695 74%
MS
Change
Project during
Name Tenement Number Location Interest quarter
Wildebeesthoek 661 MS 74%
Woodlands 701 MS 74%
Kanowna M27/41 Coolgardie^ Royalty<>
West &
M27/47 Royalty<>
Kalbara
M27/59 Royalty<>
M27/72,27/73 Royalty<>
M27/114 Royalty<>
M27/196 Royalty<>
M27/181 5.99%
M27/414,27/415 Royalty<>
P27/1826-1829 Royalty<>
P27/1830-1842 Royalty<>
P27/1887 Royalty<>
Abbotshall ML63/409,410 Norseman^ Royalty
Royalty
Kookynie ML40/061 Leonora^ Royalty
Royalty
ML40/135,136 Royalty
Makhado Fripp 645 MS Limpopo~ 67%#
Project
Lukin 643 MS 67%#
Mutamba 668 MS 67%#
Salaita 188 MT 67%#
Tanga 849 MS 67%#
Daru 889 MS 67%#
Windhoek 900 MS 67%#
Generaal Beck 568 MS Limpopo~ 74%
Project*
Bekaf 650 MS 74%
Change
Project during
Name Tenement Number Location Interest quarter
Remaining Extent & Portion 1 of 74%
Boas 642 MS-
Chase 576 MS 74%
Coen Britz 646 MS 74%
Fanie 578 MS 74%
Portions 1, 2 and Remaining Extent 74%
of Generaal 587 MS
Joffre 584 MS 74%
Juliana 647 MS 74%
Kleinenberg 636 MS 74%
Remaining Extent of Maseri Pan 74%
520 MS
Remaining Extent and Portion 2 of 100%
Mount Stuart 153 MT
Nakab 184 MT 100%
Phantom 640 MS 74%
Riet 182 MT 100%
Rissik 637 MS 100%
Schuitdrift 179 MT 100%
Septimus 156 MT 100%
Solitude 111 MT 74%
Stayt 183 MT 100%
Remaining Extent & Portion 1 of 100%
Terblanche 155 MT
Van Deventer 641 MS 74%
Wildgoose 577 MS 74%
Mopane Ancaster 501 MS Limpopo~ 100%
Project*
Banff 502 MS 74%
Bierman 599 MS 74%
Change
Project during
Name Tenement Number Location Interest quarter
Cavan 508 MS 100%
Cohen 591 MS 100%
Remaining Extent, Portions 1 & 2 of 74%
Delft 499 MS
Dreyer 526 MS 74%
Remaining Extent of Du Toit 563 74%
MS
Faure 562 MS 74%
Remaining Extent and Portion 1 of 74%
Goosen 530 MS
Hermanus 533 MS 74%
Jutland 536 MS 100%
Krige 495 MS 74%
Mons 557 MS 100%
Remaining Extent of Otto 560 MS 74%
(Now Honeymoon)
Remaining Extent & Portion 1 of 74%
Pretorius 531 MS
Schalk 542 MS 74%
Stubbs 558 MS 100%
Ursa Minor 551 MS 74%
Van Heerden 519 MS 74%
Portions 1, 3, 4, 5, 6, 7, 8, 9, 74%
Remaining Extent of Portion 10,
Portions 13, 14, 15, 16, 17, 18,
19, 20, 21, 22, 23, 24, 26, 27, 29,
30, 35, 36, 37, 38, 39, 40, 41, 44,
45, 46, 48, 49, 50, 51, 52 & 54 of
Vera 815 MS
Remaining Extent of Verdun 535 74%
MS
Change
Project during
Name Tenement Number Location Interest quarter
Voorburg 503 MS 100%
Scheveningen 500 MS 74%
Uitkomst Portion 3 (of 2) of Kweekspruit No. KwaZulu- 84%
Colliery 22 Natal~
and Portion 8 (of 1) of Kweekspruit No. 84%
prospects 22
Remainder of Portion 1 of Uitkomst 84%
No. 95
Portion 5 (of 2) of Uitkomst No. 95 84%
Remainder Portion1 of Vaalbank 84%
No. 103
Portion 4 (of 1) of Vaalbank No. 103 84%
Portion 5 (of 1) of Vaalbank No. 103 84%
Remainder of Portion 1 of 84%
Rustverwacht No. 151
Remainder of Portion 2 of 84%
Rustverwacht No. 151
Remainder of Portion 3 (of 1) of 84%
Rustverwacht No. 151
Portion 4 (of 1) Rustverwacht 84%
No.151
Portion 5 (of 1) Rustverwacht No. 84%
151
Remainder of Portion 6 (of 1) of 84%
Rustverwacht No. 151
Portion 7 (of 1) of Rustverwacht No. 84%
151
Portion 8 (of 2) of Rustverwacht No. 84%
151
Remainder of Portion 9 (of 2) of 84%
Rustverwacht No. 151
Portion 11 (of 6) of Rustverwacht 84%
No. 151
Portion 12 (of 9) of Rustverwacht 84%
No. 151
Portion 13 (of 2) of Rustverwacht 84%
No. 151
Portion 14 (of 2) of Rustverwacht 84%
No. 151
Portion 15 (of 3) of Rustverwacht 84%
No. 151
Portion 16 (of 3) of Rustverwacht 84%
No. 151
Change
Project during
Name Tenement Number Location Interest quarter
Portion 17 (of 2) of Rustverwacht 84%
No. 151
Portion 18 (of 3) of Waterval No. 84%
157
Remainder of Portion 1 of Klipspruit 84%
No. 178
Remainder of Portion 4 of Klipspruit 84%
No. 178
Remainder of Portion 5 of Klipspruit 84%
No. 178
Portion 6 of Klipspruit No. 178 84%
Portion 7 (of 1) of Klipspruit No. 84%
178
Portion 8 (of 1 )of Klipspruit No. 84%
178
Portion 9 of Klipspruit No. 178 84%
Remainder of Portion 10 (of 5) of 84%
Klipspruit No. 178
Portion 11 (of 5) of Klipspruit No. 84%
178
Portion 13 (of 4) of Klipspruit No. 84%
178
Remainder of Portion 14 of 84%
Klipspruit No. 178
Portion 16 (of 14) of Klipspruit No. 84%
178
Portion 18 of Klipspruit No. 178 84%
Portion 23 of Klipspruit No. 178 84%
Remainder of Portion 1 of 84%
Jackalsdraai No. 299
Remainder of Jericho B No. 400 84%
Portion 1 of Jericho B No. 400 84%
Portion 2 of Jericho B No. 400 84%
Portion 3 of Jericho B No. 400 84%
Remainder of Jericho C No. 413 84%
Portion 1 of Jericho C No. 413 84%
Remainder of Portion 1 of Jericho A 84%
No. 414
Remainder of Portion 2 (of 1) of 84%
Jericho A No. 414
Change
Project during
Name Tenement Number Location Interest quarter
Portion 3 (of 1) of Jericho A No. 414 84%
Portion 4 (of 1) of Jericho A No. 414 84%
Portion 5 (of 2) of Jericho A No. 414 84%
Portion 6 (of 1) of Jericho A No. 414 84%
Margin No. 420 84%
Vele Portions of Overvlakte 125 MS Limpopo~ 100%
Colliery (Remaining Extent, 3, 4, 5, 6, 13,
and 14)
prospects
Bergen Op Zoom 124 MS 100%
Semple 155 MS 100%
Voorspoed 836 MS 100%
Alyth 837 MS 100%
* Form part of the Greater Soutpansberg Projects
~ Tenement located in the Republic of South Africa
^ Tenement located in Australia
#
MC Mining's interest will reduce to 67% on completion of the 26% Broad Based Black Economic
Empowerment (BBBEE) transaction
<> net smelter royalty of 0.5%
Date: 30-04-2025 10:00:00
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