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(Kitco News) - Globally diversified mining group South32 (ASX / LSE: S32) reported today that in the nine months ended March 2023, its copper equivalent production increased by 7% y-o-y, as the company's recent investments delivered strong growth in copper and low-carbon aluminium.
The company said that Australia Manganese achieved record production and the Eastern Leases project has been approved, extending the life of the operation and unlocking significant value, adding that South Africa Manganese increased production by 5% and remains on-track to achieve guidance.
"Brazil Alumina lifted production by 6% and Worsley Alumina completed planned calciner maintenance. Sierra Gorda delivered strong volume growth in copper and remains on-track to achieve FY23 production guidance," South32 said.
However, the company noted that several operations faced "challenging conditions" during the March quarter, with production guidance revised down as a result.
"At Mozal Aluminium, we reduced output as the team continued to work through their recovery plan following the devastating loss of two of our colleagues in November, with efforts hampered by severe flooding in the local area. We also temporarily suspended mining activity at Cannington during the quarter to enable the safe return to operations following heavy rainfall," South32 said.
The company added that Cerro Matoso nickel production year to date was largely unchanged, despite lower quarterly volumes due to a temporary reduction in access to higher grade ore. FY23 production guidance is revised down by 7%.
Illawarra Metallurgical Coal's Appin mine encountered challenging strata conditions in the quarter, resulting in lower longwall productivity and a 7% reduction in FY23 production guidance.
"We continue to reshape our portfolio towards commodities critical to a low-carbon future, progressing construction and development studies at Hermosa. The Taylor feasibility study remains on-track to support a planned final investment decision in mid-2023. We added the prospective Chita Valley copper project to our portfolio of greenfield options," the company said.
The company also said that operating unit cost and capital expenditure guidance has been held largely unchanged for FY23, adding that the company remains "well positioned" to capitalize on improved market conditions, with higher production volumes expected to finish the 2023 financial year.
South32 is a globally diversified mining and metals company producing bauxite, alumina, aluminium, energy and metallurgical coal, manganese, nickel, silver, lead, copper and zinc in Australia, Southern Africa and South America.
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