South32 has reported increased production across a range of commodities while maintaining its 2024–25 financial year (FY25) production guidance across most of its operations in the December 2024 quarter.
Aluminium production increased by five per cent during the period, with the Hillside Aluminium smelter in South Africa continuing to test its maximum technical capacity.
Low-carbon aluminium production from South32’s Brazil Aluminium and Mozal Aluminium operations also increased by 12 per cent.
While the company’s alumina production decreased by two per cent, quarterly volumes increased by 14 per cent as the Worsley Alumina operation in Western Australia finalised its planned calciner maintenance and Brazil Alumina benefitted from improved plant availability.
“We achieved strong results in the December 2024 quarter, delivering higher base metals production and increasing alumina production by 14 per cent, capturing the benefit of strong alumina prices,” South32 chief executive officer Graham Kerr said.
“We returned $US169 million ($272.5 million) to shareholders, paying fully-franked ordinary dividends in respect of the prior six months and continuing our on-market share buy-back, leaving $US171 million ($275.7 million) to be returned to shareholders under our capital management program.
“Having successfully divested Illawarra Metallurgical Coal in the September 2024 quarter, we have a strong balance sheet and platform for growth in minerals and metals critical to the world’s energy transition.”
Copper production was a highlight for South32, with the Sierra Gorda operation in Chile delivering a 21 per cent increase in payable copper equivalent production. The major credited the increase to improved ore quality in the current phase of the mine plan.
South32 also acquired a 19.9 per cent interest in American Eagle Gold Corp., with the option to fully acquire the Nakinilerak copper project in Canada.
The Cannington operation in Queensland delivered a 56 per cent increase in payable zinc equivalent production due to realised higher planned lead and silver grades.
“At Hermosa, construction of the zinc-lead-silver Taylor deposit reached a significant milestone as we commenced shaft sinking in the quarter,” Kerr said.
“We also progressed development of an exploration decline at the Clark battery-grade manganese deposit and exploration drilling at the Peake copper deposit to unlock further value across our broader land package.”
After receiving State Government approval for its Worsley Alumina mine development project WA, South32 remains on track to receive Federal Government approval in the March 2025 quarter.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
