Far as I know he's writing liner notes for Club releases featuring his era of KC.
Hope he is playing some saxophone in his spare time as well.
In 2004 I saw Mel Collins playing with a King Crimson tribute band, 21st Century Schizoid Band, alongside Ian McDonald, Ian Wallace, Peter Giles, and singer/guitarist Jakko Jakszyk. There's a review of it on this thread here. Incredible show - if you get the chance, go see them.