(Alliance News) - South32 Ltd on Tuesday withdrew its full-year earnings guidance and added it is clarifying whether it will be exempt from a South African government virus lockdown.
The Perth-based miner explained that its work with electricity supplier Eskom Holdings SOC Ltd classes it as an essential business.
"South32 understands that businesses essential for the maintenance of power generation in South Africa are exempt from the lockdown. We will work with the government to determine the impact of this exemption on our South African Energy Coal and South Africa Aluminium operations, given the role they play in the sustainability of Eskom's generation network," the company said.
South African President Cyril Ramaphosa said a three-week lockdown will be imposed from midnight Thursday with new curbs on which businesses remain open also being introduced.
Rampahosa had said all businesses will be closed, save for "pharmacies, laboratories, banks, essential financial and payment services, including the JSE, supermarkets, petrol stations and health care providers".
South32 said it has made plans for its South Africa manganese and metalloys alloy smelter operations to "be placed on care and maintenance".
The company said it will update the market with new 2020 production guidance "when further information becomes available".
Chief Executive Officer Graham Kerr said: "To-date, we have not yet experienced production interruptions from Covid-19 at any other operations. We continue to monitor the impact of restrictions being placed on the movement of people and goods by governments across the world and will continue to update the market as appropriate."
South32 shares were 8.9% higher at ZAR18.82 each in Johannesburg on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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