- MC Mining (MCM) is back in negotiations with its loan provider to help secure funding for the Makhado hard coking coal project in South Africa
- The company first entered a R240 million (approximately A$15.5 million) loan facility with the Industrial Development Corporation of South Africa back in early 2017
- After renegotiating the loan facility earlier this year, MC Mining has now put in a formal request to extend a planned drawdown repayment, which was due at the end of November
- Meanwhile, MC Mining is currently in talks with other lenders to advance the project through phase one of construction, with negotiations expected to finalise in the first quarter of next year
- MC Mining closed 7.98 per cent up for 20 cents per share
MC Mining (MCM) is back in negotiations with its loan provider to help secure funding for the Makhado coal project in South Africa.
The company first entered a R240 million (approximately A$15.5 million) loan facility with the Industrial Development Corporation of South Africa back in early 2017, to help bring the project through its first phase of development.
After pulling $7.7 million from the facility over the last three years and successfully progressing the project to full-permit status, the company and IDC restructured the previous loan facility. Following the renegotiations in back in August this year, MC Mining drew down and further $2.6 million and then wiped the balance on the facility by handing over a 6.7 per cent stake in the project to IDC.
Now, however, IDC are back at the negotiating table, after MC Mining put in a formal request to extend the repayment of both drawdowns plus interest, which were due at the end of November.
Despite the hiccup, the company remained confident that it can reach a “satisfactory position” with the IDC.
Brenda Berlin, Acting CEO of MC Mining believes the IDC remains supportive of the development of the Makhado project. She went on to outline the benefits the project holds for stakeholders.
“The development of the Makhado Project is supported by favourable long-term hard coking coal markets and forecast growth in worldwide steel demand, driven by global economic development and urbanisation,” she said.
Meanwhile, MC Mining is currently in talks with other lenders to advance the project through phase one of construction, with negotiations expected to finalise in the first quarter of next year.
If all goes to plan and following a nine-month construction period, initial coal sales are anticipated in the first half of 2022.
MC Mining closed 7.98 per cent up for 20 cents per share.