The company has penned an offtake agreement with ArcelorMittal South Africa.
MC Mining Limited (ASX:MCM) has announced the completion of a major milestone for the company, the signing of an off-take agreement with ArcelorMittal South Africa. The agreement will see AMSA purchasing hard coking coal produced during phase 1 of the Makhado coking coal project.
As quoted from the press release:
The agreement reaffirms the quality of Makhado’s HCC and follows the April 2019 announcement of an off-take with one of the world’s largest producers and marketers of seaborne traded coal for all the by-product thermal coal to be produced by Phase 1. Completion of these off-takes satisfies a key requirement for the Makhado project’s economics and allows funding discussions to gain further traction with construction anticipated to commence in Q3 CY2019.
South Africa has a very limited production of high-quality metallurgical (coking) coal,resulting in AMSA and other coke producers having to import HCC for the manufacture of metallurgical coke, a key ingredient in the production of steel.