South32 sees US aluminium tariffs as negotiating tactic
US President Donald Trump's tariffs on aluminium are more likely to be part of a bargaining strategy than a long-term policy of his administration, said CEO Graham Kerr of Australian diversified miner South32 on Thursday.
South32 produces aluminium in Brazil, South Africa and Mozambique, and sells a portion of its South African production to US markets, Kerr said.
"The challenge, I guess, with all the tariffs is how long does it last... To me, it's a negotiation rather than a long term policy," he told an earnings call.
"The reality is, from our perspective, it probably won't impact our product placement too much." The company expects to produce 1.2-million tonnes of aluminium this year.
South32 beat analysts' estimates for the half year, reporting an over nine-fold surge in first-half profit to $375-million, up from $40-million a year earlier, driven by higher aluminium and copper sales and strong commodity prices.
That beat a Visible Alpha consensus estimate of $370.1-million.
Shares of the company rose 2.5% by midday, compared with a 2% rise in the broader miners' sub-index.
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