South32 metallurgical coal production guidance remains unchanged

Illawarra Metallurgical Coal saleable production increased by 17% (or 0.9Mt) to 5.9Mt in the nine months ended March 2021 as the return to a three longwall configuration continued to deliver greater efficiencies through the operation of alternate dual longwalls at the Appin mine and the company monetised further low-margin coal wash material.

While this product attracts considerable grade and product-type discounts to the API5 (5,500Kcal) index for its energy coal sales, the incremental volume benefits its Operating unit costs by eliminating coal waste emplacement.

FY21 production guidance remains unchanged at 8.0Mt with a longwall move scheduled at Appin in the June 2021 quarter.