South32's manganese output drops amid disruptions; alumina guidance unchanged

Diversified miner South32's manganese ore output in the December quarter plunged due to several disruptions, according to a quarterly report released Jan. 20.

Australia-listed South32 also withdrew its aluminum output guidance for its aluminum operations in Mozambique in December due to civil unrest, but kept the guidance for its other aluminum and alumina operations for fiscal year 2024-25 (July-June) at similar levels from 2024.

Manganese

South32's South Africa Manganese produced 485,000 wmt of manganese ore in the December quarter, down 19% quarter over quarter, according to the miner.

South32 attributed the lower output to reducing "use of higher cost trucking" and undertaking a "temporary shut at our Wessels mine in the December quarter, in response to market conditions".

Meanwhile, South32's manganese operations in Australia were at 639,000 wmt in the December quarter, after production at its Groote Eylandt operations halted due to damage caused by Tropical Cyclone Megan in March 2024.

Overall, in the first half of fiscal 2024-25, output plunged 62% from the year-ago period, its data showed.

Its manganese operations in Australia are recovering from the impact of the cyclone, and consequently, its FY2024-25 production guidance remains unchanged at 1 million wmt of manganese, the company said.

"Production is expected to continue at limited rates in H2 FY 2024-25, as we progress the recovery plan and complete further dewatering [at the Australian operations]," South32 said.

Alumina and aluminum

South32's aluminum output in the December quarter reached 306,000 mt, up 3% quarter over quarter, with its H1 FY 2024-25 output at 604,000 mt, up 5% year over year.

South32 said output rose after its South African Hillside Aluminum reached its highest capacity, with more volumes from its Brazil and Mozambique operations also boosting the output numbers.

South32 produced 1.35 million mt of alumina in the December quarter, up 14% quarter over quarter, while H1 FY 2024-25 output reached 2.53 million mt, down 2% year over year.

The quarter-over-quarter production rise was attributed to Worsley Alumina's finished planned calciner overhaul and better plant availability at Brazil Alumina, the miner said.

South32 decided to not report its aluminum output guidance for its Mozambique aluminum operations for FY 2024-25, but kept its alumina and aluminum output guidance for all other operations unchanged.

Worsley Alumina's output guidance for FY 2024-25 was at 3.75 million mt, while Brazil Alumina's guidance was at 1.35 million mt, the miner's data showed. Hillside's aluminum output guidance was at 720,000 mt.

"[W]e continue to mitigate the impact of civil unrest in Mozambique... [and have] re-built alumina stocks at the smelter as we successfully implemented contingency plans and road blockages eased," the company said.

Nickel, copper, coking coal

South32's total nickel output in the December quarter reached 9,900 mt, up 15% quarter over quarter, with the H1 FY 2024-25 output at 18,500 mt, up 1% year over year.

The miner kept its FY 2024-25 nickel output guidance unchanged at 35,000 mt.

South32 produced 19,100 mt copper in the December quarter, up 9% quarter over quarter, the company said. In H1 FY 2024-25, copper output reached 36,700 mt, up 16% year over year.

South32's coking coal production reached 676,000 mt in the first half of FY 2024-25, as it reported data from only July through August, the ownership period for its Australia-based Illawarra operations.

South32 sold the Illawarra met coal operations to a Golden Energy and Resources and M Resources unit in August.

After divesting its met coal business, South32 said it now has a platform for growth in minerals and metals vital to the global energy transition.