A temporary suspension of mining and processing operations at its Uitkomst Colliery in Newcastle, KwaZulu-Natal does not mean that coal mining company MC Mining will be relinquishing its mining rights in the area, says MD and CEO  Christine He.

The company issued a statement on February 2 confirming that the temporary suspension is expected to take effect from March 1, subject to the completion of required statutory, labour and regulatory processes.

The operations suspension decision follows a detailed review of the colliery’s operational and financial performance, as well as an assessment of available alternatives, MC Mining states.

“Despite the implementation of turnaround initiatives during 2025, Uitkomst has continued to experience operational underperformance and sustained cash losses,” says He.

As such, she confirms that the board determined that placing the colliery on temporary suspension, referred to as a “hibernation measure”, is appropriate at this stage to limit further cash outflows while preserving the value of the asset and maintaining flexibility as the company considers future strategic options.

“The temporary suspension should not be interpreted as a permanent closure of the mine,” notes He, adding that the decision also does not signal plans to place the operation into liquidation or business rescue.

The hibernation process will be implemented in a structured and compliant manner, with measures aimed at ensuring safety and responsible management of the site during the suspension period, she outlines.

“Employee retrenchment and related processes will be undertaken in accordance with applicable labour legislation . . . these processes will form part of the broader steps required to place the operation into hibernation,” says He.

She also indicates that measures will be introduced to secure and preserve the colliery’s physical assets during the suspension period.

“These activities will include maintaining environmental and social compliance and protecting the overall value of the operation, while mining and processing activities remain halted,” says He.

MC Mining plans to implement a controlled and prioritised creditor payment process, which is intended to address financial obligations while mitigating potential legal, insolvency and reputational risks during the hibernation period,” she concludes.