21 OCTOBER 2024
We’ve just released our Quarterly Report for September 2024, highlighting a strong start to the year in aluminium and a 20 per cent uplift in copper equivalent volumes from Sierra Gorda.
During the quarter, we also continued the transformation of our portfolio with the completion of the sale of Illawarra Metallurgical Coal.
Quarterly operating performance
We maintained FY25 production guidance for all our operations and saw a strong start to the year in aluminium and copper. Key outcomes include:
- Aluminium production increased by five per cent as Hillside Aluminium continued to test its maximum technical capacity, and low-carbon aluminium production from Brazil Aluminium and Mozal Aluminium increased by 12 per cent;
- Sierra Gorda payable copper equivalent production increased by 20 per cent due to higher planned copper grades and a significant increase in molybdenum recoveries as a result of improved ore quality; and
- South Africa Manganese production increased by 12 per cent as the operation continued to deliver strong mining performance and sold lower quality secondary products to maximise margins.
These results were offset by declines in alumina production due to constrained bauxite supply and calciner maintenance at Worsley, payable zinc equivalent production due to challenging ground conditions at Cannington, and payable nickel production due to lower planned nickel grades at Cerro Matoso.
Australia Manganese continued to implement the operational recovery plan following the impacts of Tropical Cyclone Megan in the March 2024 quarter. We progressed a substantial dewatering program and a phased mining restart during the September 2024 quarter and remain on track to resume production from the primary concentrator during the December 2024 quarter.
Our portfolio
During the quarter, we completed the sale of Illawarra Metallurgical Coal (IMC).
"Completing the sale of IMC is a major milestone in our portfolio transformation which has unlocked significant value and streamlined our business toward commodities critical for a low-carbon future,” said Graham Kerr, South32 CEO.
"The sale has also lowered our sustaining capital intensity and strengthened our financial position, enabling us to self fund our growth in base metals and deliver returns to shareholders via our on-market share buy-back.”
At our Hermosa project, construction of our large-scale, long-life Taylor zinc-lead-silver project is progressing as planned and we are continuing to unlock value across our broader land package.
In September, Hermosa was selected for a US$166 million award negotiation from the US Department of Energy, which recognises Clark’s potential to supply battery-grade manganese for the emerging North American market.
See our full Quarterly Report for September 2024 here (.pdf).