Uitkomst Colliery Secures R20m Facility From ABSA

Uitkomst Colliery, MC Mining’s 70% owned metallurgical and thermal coal mine, recently secured a R20 million facility from ABSA.

The facility has a floating coupon at the South African prime rate (currently 10.0% per annum) plus 1.0% and will be used to fund short-term working capital requirements and potential expansion opportunities.

R15 million of the asset finance facility from ABSA – a major South African financial services provider – will be used to finance its new underground mining equipment.

Uitkomst transitioned to an owner-operated mine in August 2018 with the acquisition of the independent underground mining contractor’s business operations, which included mining equipment and the transfer of around 340 contractor employees, said the company.

Commenting on the announcement, David Brown, MC Mining’s CEO said that “the facility further enhances our relationship with ABSA and is an endorsement by an independent financial institution of the potential of Uitkomst Colliery and its ability to deliver on tonnage targets coupled with prevailing favourable coal prices. In addition, MC Mining continues to progress with various initiatives relating to the Makhado hard coking and thermal coal project with further updates to come.”

MC Mining is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. MCM’s key projects include the Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (coking and thermal coal), Vele Colliery (coking and thermal coal), and the Greater Soutpansberg Projects (MbeuYashu).

Image: Uitkomst Colliery, KwaZulu-Natal

You might be interested in these articles?