JOHANNESBURG - MC Mining Limited said on Tuesday the last three months of its 2019 financial year were very successful, including the signature of off-take agreements for its Makhado hard coking coal as well the thermal coal by-product.
In an update for the three months ended June 30, CEO David Brown said South Africa produced significant quantities of thermal coal but had very limited quantities of high-quality metallurgical coal.
"The off-take with the country’s largest steel producer will result in the majority of Makhado Phase 1’s coking coal being sold domestically, replacing some coal imports," he said.
"The development of the Makhado project will make MC Mining the pre-eminent South African producer of hard coking coal which trades at a significant premium to thermal coal and is a key ingredient contributing to the manufacture of steel."
MC Mining said the long-term viability of Makhado’s coking coal was supported by global steel demand that was expected to grow over the next ten years, with economic development and urbanisation driving increases in per capita steel usage.