South32: strong growth in aluminium, copper and manganese
South32 achieved strong year-on-year growth in aluminium, copper and manganese, setting three annual production records and realising the benefit of its investments in commodities for a low-carbon future.
Group copper equivalent production increased by 9% in the June 2023 quarter, underpinned by a return to stable operations following adverse weather and other temporary impacts in the prior quarter.
FY2023 Operating unit costs are expected to be in-line with its previously updated guidance.
Aluminium production increased by 14% in FY23, as Hillside Aluminium achieved record production and South32 benefited from its investments in low-carbon aluminium capacity at Mozal Aluminium and Brazil Aluminium.
Alumina production declined by 4% in FY23 due to temporary outages in the June 2023 quarter. Both refineries have returned to nameplate production rates and FY24 guidance is unchanged.
Base metals production increased by 17% in FY23 as South32 embedded the Sierra Gorda copper operation in its portfolio, while Cannington zinc-lead-silver and Cerro Matoso nickel operations achieved revised guidance.
Australia Manganese and South Africa Manganese achieved annual production records, delivering a 4% increase in manganese production in FY23.
Illawarra Metallurgical Coal achieved revised FY23 production guidance, with improved longwall performance delivering a 21% increase in metallurgical coal production in the June 2023 quarter.
South32 advanced study work for its Taylor zinc-lead-silver and Clark battery-grade manganese development options at its Hermosa project, the first mining project in the United States to be covered by the FAST-41 process.
South32 announced an upgrade to the Mineral Resource estimate for the Taylor deposit, and its best exploration drill results to date from its Peake copper exploration prospect.
South32 will record a non-cash impairment expense for its Taylor deposit in FY23 financial results, reflecting delays from the impact of COVID-19, significant dewatering requirements and current inflationary market conditions.
