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(Kitco News) - Globally diversified mining group South32 (LSE: S32) reported Monday that in the June 2023 quarter, its copper equivalent production increased by 9% q-o-q, underpinned by a return to stable operations following adverse weather and other temporary impacts in the prior quarter.
The company said that in its fiscal 2023 ended June 30 2023 (FY23), the company achieved strong year-on-year growth in aluminium, copper and manganese, setting three annual production records and realizing the benefit of its investments in commodities for a low-carbon future.
South32’s aluminium production increased by 14% to 1,133 kt in FY23, as Hillside Aluminium achieved record production and the company benefited from its investments in low-carbon aluminium capacity at Mozal Aluminium and Brazil Aluminium.
However, alumina production declined by 4% to 5,101 kt in FY23 due to temporary outages in the June 2023 quarter. South32 said that both refineries have returned to nameplate production rates and FY24 guidance is unchanged.
The company’s base metals production increased by 17% in FY23 as South32 embedded the Sierra Gorda copper operation in its portfolio, while the company’s Cannington zinc-lead-silver and Cerro Matoso nickel operations achieved revised guidance.
Australia Manganese and South Africa Manganese achieved annual production records, delivering a 4% increase in manganese production in FY23.
Illawarra Metallurgical Coal achieved revised FY23 production guidance, with improved longwall performance delivering a 21% increase in metallurgical coal production in the June 2023 quarter.
The company also said that its FY23 operating unit costs are expected to be in-line with its previously updated guidance.
CEO Graham Kerr commented on the results, “We had a strong finish to the year, with Group copper equivalent production growing 9% in the quarter. Our strong operating results included record annual production at Hillside Aluminium, Australia Manganese and South Africa Manganese. Aluminium production increased by 14% and base metals production by 17% in FY23, supported by our recent investments in commodities critical to a low-carbon future.
“Looking forward, we are well placed to continue to capitalize on the global energy transition. We expect to deliver further production growth in aluminium and base metals in FY24, and our high-quality development options have the potential to further strengthen our long-term supply of critical minerals.”
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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