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(Alliance News) - South32 Ltd reported on Tuesday it had kept its full-year production guidance unchanged, but revised operating costs at some of its mines.
In its quarterly report, the Perth-based mining company said it had achieved "another excellent operating result," taking advantage of strong commodity prices.
Alumina production rose by 8.1% to 1.32 million tonnes for the third quarter to March 31, up from 1.22 million tonnes in the same quarter last year. For nine months to March 31, alumina output was flat at 3.9 million tonnes on a year-on-year basis.
Aluminium production was up 1.3% to 243,000 tonnes for the third quarter from 240,000 previously. Production was at 736,000 tonnes for the nine-month period, almost flat from 737,000 last year.
For the third quarter, metallurgical coal output was unchanged at 1.57 million tonnes, while it declined by 10% to 4.3 million tonnes during nine months from 4.8 million tonnes.
Manganese ore production dropped by 11% to 1.21 million tonnes in the third quarter from 1.36 million tonnes. Output declined by 5% to 3.9 million tonnes for nine months from 4.2 milion tonnes.
The miner reported copper production for the first time, having completed the acquisition of a 45% interest in the Sierra Gorda copper mine.
During the third quarter, the group completed a pre-feasibility study for the zinc-lead-silver Taylor Deposit at the Hermosa project, underlining its potential to be a globally significant and sustainable producer of base and precious metals.
South32 kept production guidance for the financial year to June 30 unchanged as the group capitalised on strong commodity prices.
Annual alumina production is expected to remain flat at 3.96 million tonnes.
Aluminium production is likely to rise slightly to 720,000 tonnes from 717,000 in 2021.
Metallurgical coal production is seen falling by 4.3% to 5.9 million tonnes from 6.2 million tonnes.
Manganese ore production guidance is unchanged at 2.0 million tonnes.
But it said operating unit cost guidance for the year has been revised to reflect stronger producer currencies, higher raw material costs and the increase in commodity prices.
Worsley Alumina expects an increase in cost to USD265 per tonne from USD257 in the previous guidance.
Australia Manganese was raised in cost to USD1.88 a tonne from USD1.81, while South Africa Manganese will likely see a rise to USD2.79 per tonne from USD2.51.
Costs at Illawarra Metallurgical Coal are seen increasing to USD126 per tonne from USD115.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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