SACMH cited reduced coal prices and difficult operational conditions.

The board of the company said the care and maintenance period would be for three months.

“During this period, the board will review the operations, including the capital requirements and cost structure, with a view to deciding on the future direction of the business,” SACMH said in a statement.

Previously known as Yomhlaba Limited, the company was renamed as part of the transition to becoming what it calls a broad-based, black-controlled mining group.

In an investor presentation halfway through last year, the company said it was planning to open two underground sections at Umlabu and to purchase new mining equipment, including continuous miners, shuttlecars and roof bolters.

Average run-of-mine production from Umlabu was in the realm of 80,000 tonnes of coal per month.