MC Mining updates Chinese agreement


MC Mining updates Chinese agreement

Published Date: 2019-06-24 | Source: Stephen Gunnion | Author: Stephen Gunnion

MC Mining updates Chinese agreement

Under the deal, Haohua Energy International will help arrange funding for the development of MC's coking coal assets.

MC Mining has signed a cooperation agreement with China's biggest exporter of anthracite coal after the previous accord lapsed.

The local coal producer says its original agreement with Haohua Energy International (HEI) was signed in 2013 but the introduction of new shareholders during the last six years resulted in HEI's shareholding in MC Mining falling below the required 19.9% threshold. HEI is a subsidiary of Shanghai-listed Beijing Haohua Energy Resource. The revised deal aligns HEI's threshold with other big shareholders in MC Mining eligible to have a seat on the company's board. It said the company would need to maintain an interest of at least 5.4% to have the right to nominate a potential director to the board.

The agreement includes details on the commercial, technical, financial and operational issues pursuant to which MC Mining will be able to draw on HEI's technical expertise. HEI will help arrange further funding for the development of MC Mining's coking coal assets.

Friday's announcement followed news earlier in the week that MC Mining had struck an off-take deal ArcelorMittal South Africa, which will see the steelmaker buying hard coking coal from Phase 1 of its Makhado coking coal project in Limpopo.

Makhado is MC's flagship project and, once developed, will be the only significant hard coking coal mine in the country, producing up to 800 000 tonnes of HCC annually as well as between 900,000 and one million tonnes of export quality thermal coal.

Iits shares closed 21% higher at R8.99 on Friday in a single trade.

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