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(Alliance News) - MC Mining Ltd on Wednesday announced that the Industrial Development Corp of South Africa Ltd has extended the date for repayment of a ZAR160 million loan to July 31.
The producer of thermal and coking coal focused on South Africa also announced that the IDC has agreed to extend the draw down date for the conditional ZAR245 million loan facility agreed, which is to partially finance the development of phase 1 of the Makhado hard coking coal project in Limpopo, to 31 July.
MC Mining Acting Chief Executive Brenda Berlin said: "The IDC's extension of the Initial IDC facility, as well as the terminal draw down date for the term loan, reiterates their support for the development of the Makhado project. The company continues to make progress on the initiatives to secure the remaining funding for phase 1 and anticipates that these will be completed during the first quarter of 2021, followed by a nine-month construction period and first coal sales in the first half of 2022."
Phase 1 has an internal rate of return in excess of 40% and a payback of less than two and a half years, supported by "favourable" long-term hard coking coal markets and driven by forecast growth in worldwide steel demand, Berlin added.
MC Mining shares were flat at ZAR1.60 each in Johannesburg on Wednesday afternoon, and were up 5.3% at 7.90 pence each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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