MC Mining Outsources South Africa Coal Processing Plant Operations
By Anthony O. Goriainoff
MC Mining Ltd. said Friday that it has signed a contract mining agreement with Hlalethembeni Outsourcing Services Pty for its Vele Aluwani Colliery coal processing plant in South Africa.
The South Africa-focused coal-mining company said the contract covers the the recommission, upgrade and operation of the plant, and undertake mining.
The company said the recommissioning will add a further cash-generating unit to its portfolio with limited financial or human capital contributions which will deliver positive cash returns for shareholders.
“The outsourcing of Vele operations secures the necessary investment from a third party to modify the coal processing plant and also removes a significant portion of the ongoing costs associated with Vele,” Chief Executive Godfrey Gomwe said.
Shares at 0858 GMT were up 0.75 pence, or 5.7%, at 14 pence.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
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