South32 FY26: Brazil aluminium output rises 4%; Worsley alumina holds steady; Mozal pauses

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Australia-based mining and metals company South32 released its financial report for the June quarter 2026 (Q4) and the FY2026 annual performance, delivering a mixed operational performance across its aluminium portfolio during FY2026. Higher year-on-year production from Brazil Alumina and Brazil Aluminium (despite its weak quarter-on-quarter output) offset softer sales at several operations and the suspension of production at Mozal Aluminium. Worsley Alumina maintained stable production levels.

South32 CEO Matt Daley stated, “On 1 July, we announced a step change for South32, with the sale of our aluminium value chain business to Alcoa. Once complete, this sale will unlock significant value for shareholders and reposition South32 as a leading upstream base metals-focused company.”

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Worsley Alumina (86 per cent share)

Q4 FY26 performance

Worsley Alumina produced 943,000 tonnes of saleable alumina in Q4 FY26, up 6 per cent from 886,000 tonnes in Q3 FY26 and 1 per cent higher than 936,000 tonnes in Q4 FY25.

Sales also recovered strongly to 931,000 tonnes, increasing 11 per cent Q-o-Q from 836,000 tonnes, although remaining 7 per cent below the 1 million tonnes sold in Q4 FY25.  

FY26 performance

For the full financial year, Worsley Alumina produced 3.72 million tonnes, broadly unchanged from 3.73 million tonnes in FY25. The refinery benefited from improved bauxite availability, although this was offset by a temporary weather-related disruption to third-party gas supply during Q3 FY26.

Annual sales declined 2 per cent Y-o-Y to 3.63 million tonnes from 3.7 million tonnes in FY25. Production reached 99 per cent of FY26 guidance, while FY27 production guidance has been maintained at 3.9 million tonnes.

The average realised alumina price for Worsley Alumina declined from USD 518 per tonne in FY25 to USD 363 per tonne in FY26, marking a 30 per cent Y-o-Y decrease.

Brazil Alumina (36 per cent share, non-operated)

Q4 FY26 performance

Brazil Alumina delivered stable quarterly production of 351,000 tonnes, the same as Q3 FY26 and 5 per cent higher than the 334,000 tonnes produced in Q4 FY25.

Sales improved to 357,000 tonnes, increasing 7 per cent both Q-o-Q and Y-o-Y from 333,000 tonnes in Q3 FY26 and 335,000 tonnes in Q4 FY25.  

FY26 performance

The refinery achieved a record annual production of 1.41 million tonnes, rising 5 per cent from 1.340 million tonnes in FY25. Strong plant availability enabled operations above nameplate capacity, allowing production to exceed FY26 guidance by 4 per cent.

Alumina sales increased 4 per cent to 1.409 million tonnes, compared with 1.349 million tonnes a year earlier. FY27 production guidance remains unchanged at 1.360 million tonnes.

Brazil Alumina recorded an average realised alumina price of USD 356 per tonne in FY26, down from USD 555 per tonne in FY25, indicating a 36 per cent Y-o-Y decline.

Brazil Aluminium (40 per cent share, non-operated)

Q4 FY26 performance

Brazil Aluminium produced 37,000 tonnes in Q4 FY26, up 12 per cent from 33,000 tonnes in Q3 FY26 as the smelter continued improving process stability across all three potlines. However, it slipped 3 per cent from the 38,000 tonnes recorded in Q4 FY25.

Sales climbed sharply to 42,000 tonnes, increasing 56 per cent from 27,000 tonnes in the previous quarter due to the timing of export shipments, although they remained 9 per cent below the 46,000 tonnes sold in Q4 FY25.

FY26 performance

Annual aluminium production increased 4 per cent to 144,000 tonnes, compared with 138,000 tonnes in FY25. The smelter achieved its revised production guidance, exceeding it by 7 per cent as the ramp-up of all three potlines continued.

Sales also rose 4 per cent to 143,000 tonnes, up from 138,000 tonnes in the previous financial year. FY27 production guidance has been maintained at 140,000 tonnes.

Brazil Aluminium reported an average realised aluminium price of USD 3,084 per tonne in FY26, up 20 per cent Y-o-Y from USD 2,572 per tonne in FY25.

Hillside Aluminium (100 per cent share)

Q4 FY26 performance

Hillside Aluminium produced 179,000 tonnes in Q4 FY26, increasing 2 per cent from 176,000 tonnes in Q3 FY26 but dropping 1 per cent from the 181,000 tonnes produced in Q4 FY25.

Sales improved to 174,000 tonnes, rising 10 per cent Q-o-Q from 158,000 tonnes, although 10 per cent lower than the 194,000 tonnes sold in the same quarter of FY25 due to shipment timing.

FY26 performance

The smelter maintained stable operations, producing 717,000 tonnes during FY26, largely unchanged from 718,000 tonnes in FY25, while continuing to operate close to its maximum technical capacity despite periodic load-shedding.

Annual sales declined 6 per cent Y-o-Y to 688,000 tonnes from 732,000 tonnes. Hillside met its FY26 production guidance, achieving 100 per cent of the target, while FY27 guidance remains unchanged at 720,000 tonnes.

Hillside Aluminium achieved an average realised aluminium price of USD 3,250 per tonne in FY26, compared with USD 2,717 per tonne in FY25, representing a 20 per cent Y-o-Y increase.

Mozal Aluminium (63.7 per cent share, care & maintenance)

Q4 FY26 performance

Aluminium production was halted in Q4 FY26 as Mozal Aluminium was placed on care and maintenance at the end of March 2026.

However, sales continued from existing inventories, with 46,000 tonnes sold during the quarter, down 31 per cent from 67,000 tonnes in Q3 FY26 and 56 per cent lower than the 105,000 tonnes sold in Q4 FY25. South32 noted that these volumes reflected the sale of remaining finished goods inventories.

FY26 performance

Mozal produced 248,000 tonnes during FY26, representing a 30 per cent Q-o-Q decline from 355,000 tonnes in FY25 because operations ceased after the smelter entered care and maintenance in March 2026.

Annual sales fell 22 per cent Y-o-Y to 275,000 tonnes, compared with 351,000 tonnes in FY25.

Despite the shutdown, production reached 103 per cent of FY26 guidance, which had already indicated a plan for transition to care and maintenance.

Mozal Aluminium recorded an average realised aluminium price of USD 3,237 per tonne in FY26, compared with USD 2,789 per tonne in FY25, indicating a 16 per cent Y-o-Y increase.

Regarding future ventures, Daley noted, “Looking ahead, our focus on operational excellence, a strong balance sheet and transformational growth in base metals leaves us well positioned to deliver value for shareholders.”

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