South32 has increased production and maintained production guidance across its operations in the first quarter of the 2024–25 financial year (Q1 FY25).
It was a quarter of highs for South32 as the miner also officially completed the sale of Illawarra Metallurgical Coal to an entity owned by Golden Energy and Resources and M Resources for $US964 million ($1.4 billion)
“Completing the sale of Illawarra Metallurgical Coal is a major milestone in our portfolio transformation which has unlocked significant value and streamlined our business toward commodities critical for a low-carbon future,” South32 chief executive officer Graham Kerr said.
“The sale has also lowered our sustaining capital intensity and strengthened our financial position, enabling us to self fund our growth in base metals and deliver returns to shareholders via our on-market share buy-back.”
Aluminium production increased by five per cent at the company’s Hillside project in South Africa, and low-carbon aluminium production from the Brazil Aluminium project and Mozal Aluminium project in Mozambique increased by 12 per cent.
The South Africa Manganese project’s production also increased by 12 per cent as thanks to a strong mining performance and the continued sale of secondary products to maximise margins.
Copper equivalent production from the Sierra Gorda project in Chile increased by 20 per cent, which South32 credited to higher planned copper grades and a significant increase in molybdenum recoveries as a result of improved ore quality.
The company also made strides at its Hermosa project in the US, with production expected to commence in 2027.
“At Hermosa, construction of our large-scale, long-life Taylor zinc-lead-silver project is progressing as planned and we are continuing to unlock value across our broader land package,” Kerr said.
“During the quarter, Hermosa was selected for a $US166 million ($247 million) award negotiation from the US Department of Energy, which recognises Clark’s potential to supply battery-grade manganese for the emerging North American market.
“Our transformed portfolio, focused on copper, zinc and our aluminium value chain, leaves us well placed to capitalise on the global energy transition and stronger market conditions to start the year.”
The company also started an extensive dewatering program at its Groote Eylandt Mining Company (GEMCO) manganese operations in the Gulf of Carpentaria, which was lashed by Cyclone Megan.
Operations were suspended by GEMCO at the time, but South32 hopes to resume production by the end of the year.
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