MC Mining says coal off-take market remains challenging
JOHANNESBURG - JSE listed coal producer MC Mining said today that the Uitkomst Colliery would assess the effects of the lockdown on critical suppliers while the coal off-take market remained challenging due to the restrictions imposed on businesses.
“Uitkomst is in constant communication with its customers to ensure their requirements are met and the colliery is only expected to return to full operating capacity following further reductions in
the national coronavirus alert assessments and once coal off-takes have normalized,” the company said.
Chief executive Brenda Berlin, said the move to Level 4 of lockdown facilitated Uitkomst resuming production of its high-grade coal, albeit at 50 percent of normal production.
“Safety of our people is
critical and normalized operating activities at the Uitkomst Colliery and MC Mining’s other sites will only resume when it is safe to do so and in line with Government regulations. Where possible, key activities for the rest of the group will continue remotely in isolated, safe environments and we remain very mindful of the economic toll that the pandemic has on our employees and their families”, said Berlin.
MC Mining said that the Lockdown had also impacted activities at the Makhado, Vele and Greater
Soutpansberg projects and the company’s corporate office and led to the implementation of business continuity measures.
“This also resulted in the company having to implement a ‘no work, no pay’ policy for non-essential staff and a portion of wages were paid by the government’s temporary employee/employer relief Scheme, reducing the adverse financial impacts that the lockdown is having on staff,” it said.
The company has also adopted a work-from-home strategy and where possible, staff will continue to work remotely.
It said it had an available cash balance of US$1.1 million and a US$6.5 million (R120 million) second tranche of the existing Industrial Development Corporation of South Africa loan available for drawdown.