South32 announces review of Samancor Manganese JV

South32 has announced a review of its Samancor Manganese joint venture which could lead to an impairment.

South32 announced it would delay the restart of three of the four high-carbon ferromanganese furnaces at its metalloys manganese alloy operation in South Africa.

The decision follows a decline in alloy prices of approximately 20 per cent since the start of the 2015 financial year.

The company said no employees would lose their jobs as a result of the temporary suspension.

South32 also confirmed that a review of the fair value of its interest in the Samancor joint venture is currently underway which is expected to have implications for the fair value adjustment.

A BHP Billiton spin off, South32 now owns 60 per cent of Samancor with Anglo American owning the rest.

Samancor Manganese is the world’s largest producer of manganese with operations in South Africa and Australia.

Its Australian operations include GEMCO, an open-cut manganese mine in the Northern Territory, ranked as the largest and one of the world’s lowest cost manganese ore producers, and TEMCO, a manganese alloy plant in Tasmania.