Coal miner MC Mining has extended its coal sales and marketing agreement between its subsidiary Uitkomst Colliery Proprietary and Overlooked by six months.
The marketing agreement was due to expire at the end of December but has now been extended until the end of June.
The key terms of the market agreement remain unchanged, with a minimum of 15 000 t/m of Uitkomst coal to be sold from January 1, with Overlooked responsible for the transportation, stockpiling and export of the coal at port. Overlooked will charge a competitive marketing fee of 5% of the sales price.
“Uitkomst produces high quality coal but does not produce sufficient volumes to fill a ship on a monthly basis and the partnership with Overlooked has generated significant benefits for Uitkomst, facilitating an export route to market and access to higher international thermal coal prices,” said MC Mining MD and CEO Godfrey Gomwe.
“The sale of the initial 120 000 t is not expected to be completed by the end of December 2022, mainly due to shipping delays, with 36 764 t currently stockpiled at the harbour and the remaining 11,281t at Uitkomst. The Uitkomst Colliery continues to supply coal to the local market, but at reduced volumes.”