Diversified miner South32 has kept its 2024 production and operating unit cost guidance unchanged, with the exception of Australia Manganese due to the impacts of tropical cyclone Megan.
SA Manganese achieved record production, delivering an 8% increase in year-to-date production, the company said in its report for the March quarter on Monday.
Hillside Aluminium’s saleable production increased by 1,000 tonnes to an equal record of 540,000 tonnes in the nine months ended March as the smelter continued to test its maximum technical capacity, despite the impact of load-shedding, it said. 2024 production guidance was unchanged 720,00 tonnes.
Hillside, in Richards Bay in KwaZulu-Natal, is the largest aluminium smelter in the southern hemisphere.
Mozal Aluminium’s saleable production decreased by 10% as the smelter continued to implement its recovery plan, while managing the effects of load-shedding.
Mozal’s full-year production guidance remains unchanged at 320,000 tonnes. Sales decreased by 36% in the March quarter due to lower product availability and the timing of shipments.
The company continues to work with Eskom and the Mozambican government to secure the smelter’s hydro-electric power supply beyond 2026, as there are currently no viable alternative suppliers of renewable energy at the required scale, it said.
Total aluminium production increased 1% for the year to date, as Hillside Aluminium achieved record production and Brazil Aluminium continued to ramp up toward nameplate capacity, it said.
Alumina production decreased 1% as the group completed planned calciner maintenance at Worsley Alumina, while Brazil Alumina remains on track to achieve production guidance.
Cannington payable zinc equivalent production increased by 15% year to date, as the operation realised higher average metal grades, and mitigated the impact of heavy rainfall following Tropical Cyclone Kirrily.
Sierra Gorda payable copper equivalent production decreased by 13% year to date, as higher throughput was offset by lower planned copper grades, and lower molybdenum recoveries in the current phase of the mine plan.
Cerro Matoso payable nickel production decreased by 5% year to date, while increasing by 8% in the quarter due to higher planned nickel grades.
Illawarra Metallurgical Coal saleable coal production increased by 60% in the quarter, as the operation completed two planned longwall moves in the prior quarter and delivered improved longwall performance at the Appin mine.
Operations at Australia Manganese were temporarily suspended in March due to tropical cyclone Megan, with recovery plans under way to enable a safe return to operations and ore exports.
"We approved development of the Taylor zinc-lead-silver deposit at our Hermosa project, which is expected to deliver attractive returns over multiple decades and unlock further value as the first phase of our regional scale opportunity," said CEO Graham Kerr.
"We also announced our decision to sell Illawarra Metallurgical Coal for up to $1.65bn, which will realise significant value, further streamline our portfolio and unlock capital to invest in our high-quality base metals projects," he said.
"With the exception of Australia Manganese, our full-year 2024 production and operating unit cost guidance is unchanged, placing us in a strong position to capitalise on strengthening market conditions for many of our key commodities."
During the quarter, the group reduced net debt by $154m to $937m as the group benefited from improved operating performance and a partial unwind in working capital, as it drew down inventory at Hillside Aluminium, partially offset by a temporary inventory build at Cannington due to weather related disruptions to rail logistics.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.