MC Mining subsidiary Uitkomst Colliery is implementing a revised business plan that is expected to result in operational changes that position it for future growth.
Investors welcomed the announcement, with the company’s share price jumping 15% to close at R1.50 on the JSE on Tuesday.
The turnaround plan is being implemented with the assistance of Metalla Tutum Engineering (MTE) — an SA specialist mining consultancy and engineering company. MTE was established in 2017 and provides expertise in mine management and operational improvements, MC Mining said in a statement on Tuesday.
Uitkomst Colliery, located in KwaZulu-Natal, is an integral part of MC Mining’s strategy of supporting SA’s steel master plan, while also becoming a significant regional supplier of steelmaking coal products.
Uitkomst produces pulverised coal injection for the steel industry, and specialised, high quality-sized coal products for the SA manufacturing industry, both of which reduce input costs and provide the domestic steel industry with import substitution.
The turnaround plan will focus on reconfiguring underground mining layouts to streamline operational efficiencies and resource deployment and implement coal handling and processing plant modifications to improve coal product yields.
The plan will reduce its workforce from 430 to 366, with minimal forced retrenchments, it said. The plan will also focus on entering into longer-term coal offtake agreements to stabilise price certainty.
These changes should see Uitkomst improve on the operations safety and health performance, reduce unit costs of saleable coal production to respond to the current low coal price environment, and reduce the volatility in earnings, MC Mining, which was formerly known as Coal of Africa, said.
“The inclusion of a seasoned mining contractor in MTE as turnaround advisers, to help drive forward the group’s growth strategy, presents a compelling opportunity for MC Mining to secure a sustainable future for Uitkomst Colliery, while allowing us to focus the group’s limited resources to bring Makhado to account this calendar year,” said interim chair Mathews Senosi.
MC Mining’s flagship project, the Makhado steelmaking hard coking coal project in Limpopo, which is due for commissioning in December, stands to be the largest, hard coking coal (HCC) producer in the country. The steel industry now imports its HCC.
Head of corporate affairs Andrew Modise said as part of the turnaround plan, the workforce had been reduced by 50, largely as a result of natural attrition and voluntary severance packages.
“In collaboration with our stakeholders, Uitkomst Colliery is focused on establishing a firm foundation to contribute to the growth of SA’s steel industry and so generate sustainable employment opportunities and socioeconomic upliftment,” he said.
Business Day reported previously that MC Mining reported a mixed performance for the quarter to end-March, with the Makhado project progressing well towards commissioning, while the Uitkomst colliery faced challenges.
Uitkomst produced less coal than expected, with a 13% decline compared with the corresponding period last year. This was due to narrower coal seams and equipment availability issues. However, the company did see an improvement in coal processing efficiency, with yields increasing from 60% to 73% during the quarter.
With Lindiwe Tsobo
Update: July 16 2025
This story has been updated with comments on employee numbers from the company.
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