MC Mining has implemented a ‘no work, no pay’ rule for non-essential staff following the suspension of mining at its Uitkomst coal mine in KwaZulu-Natal province.
It said it understood the “adverse impact of this policy” but was also mindful of the mitigations being introduced by the government during the lockdown period, motivated by an effort to limit the spread of COVID-19 virus.
These mitigations include the Temporary Employee Relief Scheme which the company would do its best to see applied to its affected staff.
As a mechanised operation, Uitkomst would be able to ramp up speedily, the company said. In the meantime, it had $1m in available cash and $1.1m in a general banking facility. It was also pressing on with talks to finance the balance of its $32m (R560m) Makhado metallurgical and thermal coal project.
“The company still aims to finalise the composite debt/equity package for phase one during H1 2020CY (calendar year) with construction commencing later this year,” said Brenda Berlin, acting CEO of the company.
MC Mining said earlier this month that it had “significantly advanced options” for raising the bulk of some $20m required for the project.
MC Mining requires total funding of $52m (R910m) which includes $15m of debt repayment to the Industrial Development Corporation (IDC), the state-owned development financier.
It has binding documents signed for an additional $17m debt package with the IDC which leaves $20m. Of this, $14m is the amount subject to “highly advanced options” which leaves the remainder of some $6m.
