South32 achieves record aluminium output propelled by Hillside’s strong performance in South Africa

South32, a diversified mining company, has achieved a record half-year aluminium production, propelled by the robust performance of its Hillside Aluminium operation in KwaZulu-Natal, South Africa. Additionally, South African manganese witnessed a 9 per cent increase in sales during the December quarter, fetching a 5 per cent price premium compared to the medium grade 37 per cent manganese lump ore index.
South32 achieves record aluminium output propelled by Hillside’s strong performance in South Africa
However, South32 faced challenges in Australia, with lower secondary production yields reported at Australia Manganese. This was exacerbated by a royalty tax of 20 per cent of adjusted earnings before interest and tax.
“With some of our commodities facing headwinds in the half, we continued to focus on delivering cost efficiencies and expect first half operating unit costs to be below or in line with guidance for the majority of our operations. As we enter the second half, strengthening market conditions for many of our commodities, our planned 7 per cent production growth and ongoing cost management focus, position us well to capture higher margin” said South32 CEO Graham Kerr.
Despite these challenges, the full-year guidance for aluminium production at South Africa’s Hillside Aluminium stands at an unchanged 720,000 tons. On the other hand, the Mozal Aluminium smelter in Mozambique has revised its full-year production guidance, reducing it by 12 per cent due to a 9 per tonne decline in saleable production in the six months ending December 31.
In the meantime, Financial Review journalist Hans van Leeuwen, reporting from Davos, has stated that South32 intends to provide manganese for battery production potentially. According to the report, Kerr disclosed that the initial memorandums of understanding with certain battery manufacturers and the provision of samples for a pilot study are expanding.
Moreover, due to approximately 60 per cent of Mozal's production falling below specifications in the final three months of the previous year, Mozal's products were sold at discounted prices compared to South32's other London Metal Exchange-linked aluminium sales.
source：https://www.alcircle.com/news/south32-achieves-record-aluminium-output-propelled-by-hillsides-strong-performance-in-south-africa-105700