Investment

South32’s South Africa Manganese Unit Posts Record 1Q Output — Commodity Comment

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South32 on Monday reported higher output of manganese ore and alumina quarter-on-quarter, but said production of copper and metallurgical coal fell. Here are some remarks from the Australia-based miner’s first-quarter report.


On manganese output:

“Australia Manganese saleable production increased by 2% to 890,000 wet metric tons in the September 2023 quarter as the operation achieved strong primary output, and continued to operate the low-cost PC02 circuit above its design capacity, delivering circa 11% of production.

South Africa Manganese continued its strong performance, increasing saleable production by 7% to a record 628,000 wet tons in the September 2023 quarter. FY24 production guidance remains unchanged… with planned maintenance scheduled for the December 2023 and March 2024 quarters.”


On alumina output:

“Worsley Alumina saleable production decreased by 4% to 972,000 tons in the September 2023 quarter as we completed planned calciner maintenance. FY24 production guidance remains unchanged… with the refinery expected to deliver production at nameplate capacity of 4.6 million tons (100% basis) over the year. Further planned calciner maintenance is scheduled for the March 2024 quarter.

Brazil Alumina saleable production increased by 34% to 318,000 tons in the September 2023 quarter as the refinery continued its recovery from the temporary port infrastructure outages in the prior quarter.”


On aluminum production:

“Brazil Aluminium saleable production was largely unchanged at 24,000 tons in the September 2023 quarter as the smelter continued to ramp-up all three potlines. We progressed activity to commence export sales of our share of the smelter’s aluminum production, having established initial sales volumes with domestic customers. We expect to commence export sales and drawdown our inventory position to normalized levels during the December 2023 quarter.

Hillside Aluminium saleable production was unchanged at 180,000 tons in the September 2023 quarter as the smelter continued to test its maximum technical capacity despite the impact of elevated load-shedding.

Mozal Aluminium saleable production increased by 2% to 84,000 tons in the September 2023 quarter as the smelter continued to implement initiatives to achieve planned equipment utilization and pot stability, while managing the impact of elevated load-shedding.”


On copper output:

“Sierra Gorda payable copper equivalent production decreased by 10% to 20,300 tons in the September 2023 quarter as higher plant throughput delivered by the debottlenecking project, was more than offset by lower planned copper grades. Sierra Gorda progressed the feasibility study for the fourth grinding line expansion, which… remains on-track to be completed in the June 2024 half year.”


On metallurgical-coal output:

“Illawarra Metallurgical Coal saleable production decreased by 33% to 1.168 million tons in the September 2023 quarter as the operation commenced an extended planned longwall move at the Dendrobium mine. A new four-year industrial agreement covering deputies at the Appin mine was finalized subsequent to the end of the quarter.”


On nickel production:

“Cerro Matoso payable nickel production decreased by 19% to 8,300 tons in the September 2023 quarter as plant availability was impacted by planned maintenance and a temporary reduction in third-party gas supply, while nickel grades were sequentially lower in accordance with the mine plan. FY24 production guidance remains unchanged… with improved plant throughput and nickel grades expected across the remainder of the year.”


Write to Rhiannon Hoyle at [email protected]


Read the full article here

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