22nd Sep 2015 10:21
LONDON (Alliance News) - South32 Ltd on Tuesday said it has received increases to the resource estimates for its Cannington, GEMCO and Illawarra Metallurgical Coal projects.
The company also said US authorities have set an import tax on managenese produced in Australia which will affect its TEMCO manganese alloy plant in Tasmania, Australia.
The company, spun-out from mining giant BHP Billiton PLC earlier this year, said it has confirmed a 21% increase in the mineral resources at Cannington silver, lead and zinc project in northwest Queensland.
At GEMCO, based in Australia's Northern Territory and 60%-owned by South32, the company said the mineral resource has been upgraded due to additional drilling undertaken in areas previously classified as indicated resources.
At Illawarra Metallurgical Coal, which South32 wholly owns and which is in New South Wales in Australia, the coal resources estimate has been upgraded due to additional drilling undertaken in the past two years and the upgrading of reserves due to the company obtaining extraction approval for longwall panels.
In a separate statement Tuesday, the miner said the US Department of Commerce has issued a notice of a preliminary anti-dumping determination, setting a 11.93% import tax on silicomanganese of Australian origin being imported into the US, which will affect its manganese alloy plant located in Tasmania, Australia.
South32 owns a 60% stake in GEMCO, which wholly-owns the TEMCO manganese alloy plant in Australia.
"The Department of Commerce will continue its investigations and is expected to make a final determination in 2016. The US International Trade Commission is expected to commence its final injury investigation. TEMCO intends to defend its position," said South32.
"South32 is disappointed with the imposition of these preliminary measures and will review its options. The preliminary finding does not impact South32's manganese ore operations in Australia and South Africa," it added.
The miner's manganese ore operations in Australia and South Africa accounted for 95% of the company's earnings before interest, tax, depreciation and amortisation in its last financial year.
Shares in South32 were down 0.1% to 66.94 pence per share on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance.
Updated by Joshua Warner; [email protected]; @JoshAlliance
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