JOHANNESBURG (miningweekly.com) – Johannesburg-, Sydney and London-listed globally diversified mining and metals company South32 on Monday reported a sufficiently strong start to the year to enable it to maintain production guidance for all operations except Mozal Aluminium in Mozambique, where it is mitigating the impact of civil unrest.

The December 2024 quarter delivered increased base metals production with South African manganese expected to be 5% above current financial year 2025 (FY25) guidance of two-million wet metric tonnes.

Fourteen per cent higher alumina output secured the benefit of stronger alumina prices.

The company, headed by CEO Graham Kerr, returned $169-million to shareholders with the continuing on-market share buy-back, leaving $171-million to be returned to shareholders under the capital management programme.

The divestment of metallurgical coal company Illawarra in the September 2024 quarter, has strengthened the balance sheet and platform for growth in minerals and metals needed for the world’s energy transition.

Shaft-sinking began in the quarter to access the zinc/lead/silver Taylor deposit at Hermosa, located in the Patagonia Mountains, about 80 km south-east of Tucson, Arizona, in the US.

The development of an exploration decline was also progressed at the Clark battery-grade manganese deposit and exploration drilling at the Peake copper deposit to unlock further value across its broader land package, also at Hermosa.

Also embedded during the period were additional copper exploration options.

Half-year aluminium production increased by 5% as Hillside Aluminium at Richards Bay in South Africa continued to test its maximum technical capacity and low-carbon aluminium production from Brazil Aluminium and Mozal Aluminium increased by 12%.

Hillside, the largest aluminium smelter in the southern hemisphere, supports South Africa’s downstream aluminium industry through the supply of liquid metal to Hulamin and other local companies that sell products in the domestic and export markets.

Hillside’s saleable production increased by 1% to 362 000 t in the December 2024 half-year and FY25 production guidance remains unchanged at 720 000 t. Sales increased by 10% in the December quarter as the inventory position returned to normalised levels.

Australia’s Worsley, which supplies alumina to Hillside, completed planned calciner maintenance and Brazil Alumina benefitted from improved plant availability.

In the quarter, Worsley received State environmental approval for the Worsley Mine Development Project and remains on track to receive Federal approval in the March 2025 quarter.

At Sierra Gorda in Chile payable copper equivalent production increased by 21% in the half-year as the operation benefitted from improved ore quality in the current phase of the mine plan.

Cannington in Australia delivered a 56% increase in payable zinc equivalent production in the quarter and realised higher planned lead and silver grades and Australia Manganese resumed production from the primary concentrator and progressed construction of infrastructure.

The 19.9% interest in American Eagle provides an option to acquire 100% of Nakinilerak copper porphyry exploration prospect in British Columbia, Canada.