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By Lindiwe TsoboMC Mining says its Makhado coal project in Limpopo is nearing production after reaching several development milestones in the three months to end-June.The ASX- and JSE-listed coal developer said construction of the processing plant advanced during the period, with the facility entering its final stages ahead of performance testing in August. The company expects production to begin shortly afterwards before ramping up to planned capacity.Makhado is expected to produce about 800,000 tonnes a year of hard coking coal, a key input in steelmaking, once fully operational. The company has described Makhado as South Africa’s largest planned hard coking coal operation.MC Mining said supporting infrastructure at Makhado progressed during the period, with water systems completed and logistics infrastructure in place.Progress at Makhado comes as MC Mining changes ownership and management after investment by Kinetic Development Group (KDG), which became the company’s controlling shareholder in April with a 51% stake.KDG invested just more than $6m in MC Mining, which also secured a further $9.936m in funding from KDG and minority shareholder Eagle Canyon International Group.Following KDG’s investment, Jianheng (Albert) Deng was appointed chair, while Mei Zhang and Guo Xin joined the board as nonexecutive directors.In July, MD and CEO Christine He resigned, with Deng appointed interim managing director and CEO.Operations at MC Mining’s Uitkomst Colliery in KwaZulu-Natal remain suspended while the company evaluates options, including partnerships and joint operations. The company said it had received a binding offer for Uitkomst, but no transaction was finalised.Operations at Vele Colliery in Limpopo also remain suspended while MC Mining prepares a revised business plan and assesses logistics options for transporting coal products.MC Mining said coal prices strengthened during the period, with thermal coal prices rising to an average of $113 a tonne from $99 a tonne in the previous quarter. Hard coking coal prices also improved, averaging $238 a tonne compared with $184 a tonne in the same period a year earlier.
