MC Mining Ltd (LON:MCM) chief executive David Brown described as a “massively positive step” the signing of an offtake deal to supply one of the world’s largest steelmakers with its hard coking coal.
The agreement with ArcelorMittal South Africa is for a minimum of 350,000 tonnes of output from the Makhado operation, near the border with Zimbabwe and Botswana.
Completion of the offtake lends funding discussion further “traction”, MC said.
“The long-term viability of Makhado’s hard coking coal is supported by global steel demand that is expected to grow over the next ten years, with economic development and urbanisation driving increases in per capita steel usage,” said CEO Brown
In early yesterday afternoon trade, MC Mining shares were changing hands for 45p, up 2.2%.