24th Jan 2022 07:44
(Alliance News) - Perth-based diversified miner South32 Ltd said on Monday the Covid-19 pandemic continued to batter its production, crippling its first-half and quarterly performance.
Aluminium production was almost flat at 494,000 tonnes for six months ended December 31, compared to 496,000 tonnes in the prior year.
Over the same period, metallurgical coal production dropped by 15% to 2.7 million tonnes from 3.2 million tonnes.
Alumina production fell by 4% to 2.6 million tonnes in the first six months from 2.7 million tonnes previously, while manganese ore production declined 2% to 2.8 million tonnes from 2.9 million tonnes.
On a quarterly basis, aluminium output slipped 1% to 246,000 tonnes year-on-year for the second quarter ended December 31, from 248,000 tonnes in the prior year. In the September quarter, production stood at 248,000 tonnes.
Metallurgical coal production slumped 15% to 1.1 million tonnes in the second quarter from 1.3 million tonnes in the previous year. Production tanked 24% from 1.5 million tonnes for the quarter ended September.
But alumina production decreased by 5% to 1.3 million tonnes in the December quarter from 1.4 million previously. But quarter-on-quarter, production increased by 4% from 1.2 million tonnes.
"The Covid-19 pandemic continues to impact our operations and supply chains in different ways, across our global portfolio. We have seen an increase in case numbers and workforce restrictions in many of the jurisdictions in which we operate, impacting labour availability," said South32 Chief Executive Graham Kerr.
In addition, Kerr said, port congestion and tight global freight conditions continued to hurt the company's supply chains, slowing the movement of inventory, most notably for its aluminium smelters in Southern Africa.
"While the resultant build in aluminium inventory during the December 2021 half year is expected to persist in the near term, we have and continue to establish alternative shipping solutions and points of dispatch to minimise the impact," he said.
In Johannesburg, shares in South32 sank 1.7% to ZAR44.70 on Monday morning.
By Artwell Dlamini; [email protected]
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