The Industrial Development Corporation of South Africa (IDC), a development finance institution, has granted coal miner MC Mining an extension for the repayment of its R160-million loan. The new repayment date is September 30, whereas the original deadline was June 30, inclusive of accrued interest.

The extension comes in the context of the Makhado project, which has necessitated increased funding of R1.8 billion. The IDC is a 6.7% shareholder in the Makhado project and continues to show support for its development, seeing it as a potential catalyst for industrialization in the Makhado corridor.

However, a separate facility of R245 million for the fully permitted Makhado steelmaking hard coking coal project remains uncertain. The IDC has not yet confirmed its due diligence, and credit approval has not been granted. This facility was initially tied to the forecasted Phase 1 production of 540,000 tons of steelmaking hard coking coal and 570,000 tons of thermal coal.

In June, it was revealed that the scale-up of the Makhado project has led to improved economics. The project is now targeted to produce an average of 810,000 tons of steelmaking coal and 620,000 tons of thermal coal over its 28-year life-of-mine. Consequently, the previously mentioned facility has become redundant.

MC Mining is actively pursuing fundraising initiatives for the Makhado project, with expectations of concluding them in the second quarter of this year.