BHP Billiton spin-off South32 announced sharp rise in alumina hydrate production at its Worsley Alumina operation in Western Australia in the first quarter of the 2016-2017 financial year against the previous quarter.
The total output of aluminium hydrate in the quarter ended September 30, 2016, stood at 980,000 tonnes, said the Australian-headquartered miner and metals producer in their latest update.
The company said it is focused on achieving its target of annualised rate of alumna hydrate production at the Wosely operations, and this surge in output only reaffirms the fact.
South32 was listed in May 2015 to own a collection of assets, including aluminium smelters that BHP wanted to do away with as it narrowed its focus to fewer and larger operations. The company has since grown in business and taken the route to increasing investments. However, it has been producing less of most of its commodities itself and relied on cost-savings initiatives.
The strategy fairly worked for the minerals company and it managed to improve its net cash balance. “Stronger commodity prices and cost-saving initiatives delivered a further $US239 million increase in our net cash position, despite the impact of annual payments that followed year end and the typical lag in commodity pricing,” said chief executive Graham Kerr in an earlier release.
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Mr Kerr sounded optimistic on the outlook of the mining business, even as uncertainty continues to hang over the direction of metal prices in the global market, and indicated that the company may continue to consider potential options of acquiring new mines.
“The combination of a strong balance sheet and operating leverage ensures we are well positioned to deliver superior performance as we optimise our operations, unlock their potential and identify opportunities beyond our current portfolio,” said Mr Kerr.
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