17th Oct 2019 08:58
(Alliance News) - Mining company South32 Ltd said Thursday it has kept its annual production guidance across all its commodities following solid production in its first quarter.
For the three months to the end of September, South32's alumina production was up 13% at 1.31 million tonnes from 1.15 million tonnes the year before, with a strong performance from the miner's operations in Worsley in Australia and Brazil.
For its current financial year, Perth-based South32 expects 3.97 million tonnes in production from Worsley Alumina, and 1.33 million tonnes from Brazil Alumina, up from 3.80 million tonnes from Worsley and 1.26 million tonnes from Brazil the year before.
Metallurgical coal production during the quarter rose by 9% to 1.65 million tonnes from 1.51 million tonnes the prior year, on contributions from the completion of two longwall moves in the prior quarter, namely Dendrobium and Appin.
Metallurgical coal output for the year is expected to reach 5.80 million tonnes, up from 5.35 million tonnes the year before.
However, manganese production declined by 2% to 1.41 million tonnes from 1.45 million tonnes the prior year, weighed down by South32's South African operations, where there was a planned maintenance shut at the Wessels mine.
Total manganese production guidance for the current year stands at 5.66 million tonnes, reflecting a rise from 5.54 million tonnes achieved the prior year.
"We have maintained annual production guidance for all of our operations with a strong start to the year at our alumina refineries, and a 30% increase in production at Illawarra Metallurgical Coal," said Chief Executive Officer Graham Kerr.
"With macro conditions creating headwinds for our key commodities, we remain focused on driving cost and operating performance across our portfolio," Kerr added.
Shares in South32 were up 1.3% at 132.53 pence in London, while its Johannesburg shares were 1.0% higher at ZAR25.28 on Thursday.
By Dayo Laniyan; [email protected]
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