South32 reports 2% decline in aluminium production during March 2019 quarter

South32 reported two per cent quarter-on-quarter decline in its third quarter FY19 aluminium production. Total aluminium production dropped from 247,000 tonnes in Q2 FY19 to 242,000 tonnes in Q3 FY19. Production remains unchanged at 737,000 in in the nine months ended March 2019.

Hillside Aluminium production increased by one per cent to 536,000 tonnes in the nine months ended March 2019 from 533,000 tonnes in the nine months ended March 2018. In Q3 FY19, production stood at 176,000 tonnes, down two per cent quarter-on-quarter. Sales declined by 14 per cent QoQ in the March 2019 quarter reflecting the timing of shipments.

Production guidance for FY19 remains unchanged at 720,000 tonnes, but remains subject to load-shedding.

“Notwithstanding the smelter’s continued strong operating performance, its cost profile continues to be influenced by still elevated raw material prices, including alumina sourced from Worsley Alumina. In order to ensure the smelter’s ongoing sustainability and to improve its competitiveness, we commenced a consultation process with our employees9 during the March 2019 quarter regarding a proposed restructure of the business. We expect this process to conclude in the June 2019 quarter,” the company said.

Mozal Aluminium production stood at 201,000 tonnes in the nine months ended March 2019, “as the smelter’s operating performance was impacted by an increase in the frequency of load-shedding events.” In Q3 FY19, production stood at 66,000 tonnes.

FY19 Production guidance at Mozal Aluminium remains unchanged at 269,000 tonnes.