Turnaround strategy underway at MC Mining’s Uitkomst Colliery

MC Mining has launched an updated business strategy for its Uitkomst Colliery, located in KwaZulu-Natal, accompanied by significant operational modifications aimed at facilitating future growth.

According to the company, the turnaround plan is designed to enhance operational efficiency and ensure long-term sustainability, introducing a range of structural changes at the colliery. These include reconfiguring underground mining layouts, upgrading coal handling and processing facilities, streamlining the workforce, and securing long-term offtake agreements to stabilise pricing and improve revenue certainty.

Uitkomst Colliery is a key part of MC Mining’s ambition to support South Africa’s Steel Master Plan and reduce reliance on imported coal. The mine produces pulverised coal injection (PCI) for the steel sector and high-quality sized coal for the local manufacturing industry. Both products help lower costs and improve supply chain resilience for domestic customers.

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The turnaround plan is being executed with the support of Metalla Tutum Engineering (MTE), a South African consultancy established in 2017. MTE specialises in mining operations and has been brought in to improve mine management and performance.

Key elements of the plan include reducing the workforce from 430 to 366, with minimal forced retrenchments, and implementing plant modifications to increase coal yield. The strategy is also focused on improving safety, reducing production costs, and stabilising earnings amid weaker coal prices.

MC Mining’s flagship Makhado hard coking coal project in Limpopo remains on track for commissioning in December 2025. Once operational, Makhado is expected to become South Africa’s largest domestic producer of hard coking coal, helping to meet national demand and support the steel industry.

MC Mining Interim Chairman Mathews Senosi said the appointment of MTE as turnaround advisors would strengthen Uitkomst’s future and allow the company to concentrate efforts on delivering the Makhado project.

“We look forward to implementing this transformative collaboration,” he said.