South32, a diversified mining and metal company, has kept its output estimate steady for the fiscal year 2022, based on the output in the first quarter.
On Thursday, October 21, South32 informed that alumina output fell 10 percent Q-o-Q in the first quarter of FY2022 to 1.2 million tonnes, while aluminium production climbed by 1 percent to close at 248,000 tonnes.
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Following an incident in July that damaged one of the refinery's two bauxite unloaders, alumina production in Brazil fell by 22 percent in the third quarter. The business took swift steps to reduce the inconvenience by installing temporary loading equipment, and it was back up and running in October.
“Our operations continue to perform well, achieving record production at South Africa Manganese and maintaining production above nameplate capacity at Worsley Alumina. Production at Mozal Aluminium was higher, with the smelter benefitting from our investment in the AP3XLE energy efficiency technology. Our teams continue to achieve strong operating results, despite the ongoing challenges of Covid-19 across the globe,” said Graham Kerr, the CEO of South32.
“Our operating performance has further strengthened our financial position, supporting the continuation of our on-market share buy-back, and subsequent to the end of the period, payment of our $256-million fully franked ordinary and special dividends in respect of the June 2021 half year,” added Graham Kerr, on Thursday.
Graham Kerr further stated, “We continue to actively reshape our portfolio for a low carbon future, and last week entered into binding conditional agreements to acquire a 45% interest in Sierra Gorda, a long life, open pit copper mine in Chile. We have also recently exercised our pre-emptive rights to acquire an additional interest in Mozal Aluminium. These initiatives, and our ongoing work with Alcoa in Brazil to investigate the Alumar smelter’s potential restart using renewable power, will see us increase our leverage to the metals critical to the green energy transition.”
South32 and Alcoa are looking into reopening the Alumar aluminium smelter in the second part of the 2022 fiscal year, with 100 percent renewable energy starting in 2024. By the end of the year, the partners want to make a decision on whether or not to continue the project.
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