JOHANNESBURG - MC Mining said on Wednesday it secured a R20 million, approximately US$1.4 million, loan facility from Absa to fund short-term working capital requirements and potential expansion opportunities for its 70 percent owned Uitkomst Colliery in KwaZulu-Natal.
In August Uitkomst Colliery also procured a five-year R15 million revolving asset finance facility from Absa to finance the acquisition of new underground mining equipment following the transition to owner-operated mining at the colliery.
Earlier in August, MC Mining bought independent mining contractor Khethekile Mining operations for R65 million at Uitkomst metallurgical and thermal coal colliery. It also acquired approximately 340 contractor workers and mining equipment in the deal.
MC Mining said Uitkomst generated more cash flows than expected when it acquired the colliery in June 2017. The miner said the facility would be used to fund short-term working capital requirements and potential expansion opportunities.
This recent Absa loan has a floating coupon at the South African prime rate, currently 10 percent per annum plus one percent, with Uitkomst debtors ceded as security and is subject to annual review.