MC Mining has secured further funding from controlling shareholder Kinetic Development Group (KDG) to support its operations and the continued development of its Makhado coal project.KDG will provide an $8m short-term loan and subscribe for $16m of new MC Mining shares. The funding package is intended to provide working capital for the company and support the development and commissioning of Makhado.The first $8m share subscription will be settled through the loan, while the second $8m will be paid in cash. The second tranche is conditional on Makhado having started production and KDG being satisfied with MC Mining’s operating performance and progress at the project.Makhado is central to MC Mining’s strategy to increase its production of hard coking coal, used in steelmaking. Construction of the project’s coal handling and preparation plant has been completed, with commissioning and start-up activities under way. The company expects the mine to reach planned production levels by year-end.The latest funding comes after KDG became MC Mining’s controlling shareholder in April, increasing its stake to 51%. KDG had previously provided funding to the company through a staged subscription programme, with the latest transaction providing further capital as Makhado moves towards production.The new share issue will comprise about 76.6-million shares at $0.2089 each and will require approval from MC Mining shareholders. KDG and its associates will be excluded from voting on the relevant resolutions.MC Mining said the money will also support its other operations. Its Uitkomst Colliery in KwaZulu-Natal was temporarily suspended this year after weaker production and ongoing cash losses, while operations at the Vele Colliery have also remained suspended. The funding follows a leadership change at MC Mining. Christine He stepped down as MD and CEO at end-July and moved to a nonexecutive director role. Business Day