MC Mining suspends operations in South Africa

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MC Mining suspends operations in South Africa

MC Mining has temporary suspended operations at its 70%-owned Uitkomst colliery pending resolution of the civil unrest which has spread throughout the KwaZulu-Natal province in South Africa.

The violence has been reportedly linked to the recent imprisonment of former President Jacob Zuma. Violence and looting have destroyed swathes of shops and other businesses in KwaZulu-Natal and Gauteng.

Unfortunately, protests, road blockages, and attacks targeting transport vehicles have been reported across KwaZulu-Natal, including the towns and communities where the majority of the Uitkomst mine employees and contractors reside.

Action taken

“Our first priority is the safety of our employees and contractors and we have taken this immediate action to protect their well being. Temporarily halting the colliery operations should also discourage activists from entering the Uitkomst site,” commented MC Mining’s interim CEO, Sam Randazzo

“Authorities have deployed security forces to areas where protests are occurring, and we remain hopeful of a speedy resolution so that our employees and contractors can return to work and for recommencement of operations at the Uitkomst colliery,” he added.

The current situation remains fluid and Company management continue to carefully monitor developments. Market updates will be provided as and when the situation changes. Shares in MC Mining were down 3.8% in London on Tuesday afternoon at 5.05 pence, but was 4.2% higher in Johannesburg at ZAR1.24 each.

Formerly known as Coal of Africa Limited (CoAL), the company received shareholder approval for its name change to MC Mining (MCM) in November 2017. MCM, which focuses on its metallurgical coal assets, is listed on the AIM, ASX and JSE. The company’s key projects include the Uitkomst Colliery (metallurgical coal), Makhado Project (hard coking and thermal coal), Vele Colliery (semi-soft and thermal coal) and the Greater Soutpansberg Projects – MbeuYashu (coking and thermal coal).

 

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