Coal, News, Nickel, Quarterly and half yearly results, South32

South32’s mixed quarter

Coal

South32’s December quarterly report has revealed a mixed quarter for the miner as coal output drops by 50 per cent.

Metallurgical coal production at the Illawarra mine in NSW decreased by 39 per cent in the December 2023 half year, as two planned longwall moves were completed.

Manganese production also decreased by five per cent, while payable copper equivalent production at Sierra Gorda in Chile fell by 14 per cent.

South32 chief executive officer Graham Kerr said the December quarter was a mixed one for the company.

“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,” he said.

“As we enter the second half, strengthening market conditions for many of our commodities, our planned  seven per cent production growth and ongoing cost management focus, position us well to capture higher margins.”

South32 did report some production highs, with a record half year aluminium production achieved at Hillside in South Africa. The mine delivered an eight per cent increase in quarterly production.

Nickel production at the Cerro Matoso mine in Colombia was another highlight, improving by 20 per cent in the quarter after planned maintenance was completed.

“We continued to invest to increase our exposure to commodities critical to a low-carbon future,” Kerr said.

“Sierra Gorda also continued work on the fourth grinding line expansion project, which has the potential to sustainably increase copper production.”

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