South32 maintains June 2027 timeline for Alcoa's acquisition of aluminium assets

South32 expects the sale of its aluminium value chain assets to Alcoa to be completed in the six months ending June 2027. The proposed transaction covers its aluminium operations and related bauxite and alumina assets in South Africa, Australia and Brazil.

The sale follows a binding conditional agreement signed by the two companies, under which Alcoa agreed to acquire the assets for up to USD 5.6 billion.

The assets include South32's Hillside Aluminium smelter and the idled Bayside smelter in South Africa, its interests in the Boddington bauxite mine and Worsley alumina refinery in Australia, and the Mineração Rio do Norte bauxite mine and Alumar alumina refinery and aluminium smelter in Brazil.

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South32 said aluminium production remained largely unchanged in the quarter ended September 30, 2026. Hillside Aluminium in KwaZulu-Natal produced 179,000 tonnes as it continued to test nameplate capacity.

In Brazil, South32's aluminium operations remained in the ramp-up phase, while Mozal Aluminium in Mozambique was under care and maintenance.

South32 COO Africa Noel Pillay said in July that Alcoa was well positioned to operate Hillside Aluminium in the future.

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Other operational updates

Outside its aluminium business, South32 reported quarterly manganese production of 528,000 wet metric tonnes in South Africa. Output followed improved underground productivity at the Wessels mine in the Kalahari basin.

The company also reported an 11 per cent increase in payable copper equivalent production at its Sierra Gorda mine in Chile, supported by higher planned copper grades. The operation made a record quarterly distribution of USD 153 million.

At Sierra Gorda, a fourth grinding line project is expected to increase processing capacity by 25 per cent.

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At its Hermosa project in Arizona, South32 continued construction of underground and surface infrastructure for the Taylor zinc-lead-silver project and completed the federal permitting process.

South32 reported a USD 14 million increase in net cash to USD 297 million during the quarter. Its production guidance for financial year 2027 remained unchanged.