South Africa Manganese delivered record production up by 22%
South32 had a busy quarter in which it achieved really strong production numbers across most commodities, capping off a busy period that also saw several strategic acquisitions. South Africa Manganese delivered record production in the June 2022 quarter as it increased its Manganese production by 22%, supporting higher sales with customer demand for its premium products delivering strong price realisations.
AUSTRALIA MANGANESE (60% SHARE)
Australia Manganese saleable production decreased by 5% (or 166kwmt) to 3,363kwmt in FY22 as weather disruptions and COVID-19 workplace restrictions prevented the re-build of stockpiles ahead of the wet season, and contributed to adverse ore handling characteristics that resulted in a lower yield at the primary concentrator during the year.
Notwithstanding these challenges in H1 FY22, saleable production increased by 4% in the June 2022 quarter and South32 exceeded its revised FY22 guidance by 5% as the operation benefitted from improved weather conditions.
Its FY22 price realisations improved year-on-year as it took advantage of favourable market conditions, achieving the high grade 44% manganese lump ore index on a volume weighted M-1 basis, despite its low-cost PC02 circuit operating above its design capacity, contributing 11% of total production (FY21: 10%).
SOUTH AFRICA MANGANESE (ORE 54.6% SHARE)
South Africa Manganese saleable production was largely unchanged at 2,069kwmt in FY22 as South32 produced higher volumes of premium material from its Mamatwan mine during the year, more than offsetting the impact of scheduled maintenance in the March 2022 quarter.
The operation delivered a strong finish to the year, with saleable production increasing by 60% to a record 625kwmt in the June 2022 quarter following the prior period’s maintenance shut, beating its FY22 guidance by 3%.
Record production was matched by a 17% increase in sales for the June 2022 quarter following the partial improvement in third party rail and port performance from the prior quarter. South32 continues to optimise its product mix to take advantage of favourable market conditions, realising a premium of ~18% to the medium grade 37% manganese lump ore index on a volume weighted M-1 basis across FY22.
