South32 shareholders approve aluminium asset sale worth $5.6b to Alcoa
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South32 shareholders have overwhelmingly backed the proposed sale of the company’s aluminium value chain assets to Alcoa for up to USD 5.6 billion, with proxy votes recording 99.18 per cent support for the transaction at the company’s Annual General Meeting (AGM) on Wednesday.
The disposal covers South32’s interests in Worsley Alumina, Hillside Aluminium, the MRN bauxite mine, the Brazil Alumina refinery and the Brazil Aluminium smelter. According to the company’s statement, the transaction is expected to be completed in the second half of fiscal year 2027, subject to the satisfaction of relevant conditions.
The vote marks a significant step towards the transfer of the assets to Alcoa, spanning bauxite mining, alumina refining and primary aluminium production.
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South32 reports stronger FY2026 earnings
Alongside the transaction update, South32 reported improved financial performance for fiscal year 2026. Underlying EBITDA rose 28 per cent to USD 2.5 billion, while underlying earnings increased 55 per cent to USD 1 billion. The company ended the year with net cash of USD 283 million.
South32 returned USD 327 million to shareholders during the year. This comprised USD 292 million in fully franked ordinary dividends and USD 35 million through an on-market share buyback.
The board has extended its capital management programme to September 2027, with USD 209 million remaining to be returned to shareholders.
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Worsley Alumina fatality raises workplace safety focus
The AGM also addressed workplace safety following the death of Simon Mukwarami, who was fatally injured during a plant maintenance activity at the Worsley Alumina refinery in March.
South32 CEO Matt Daley, who joined the company in February, said the company was working to eliminate or reduce risks associated with working at heights.
Directors re-elected as Hermosa project advances
Shareholders approved the re-election of directors Dr Xiaoling Liu, Carlos Mesquita and Jane Nelson, as well as the election of new directors Geoff Healy and Sinead Kaufman. The company’s remuneration report received 81.37 per cent support.
South32 is also progressing its Hermosa project in Arizona, where the Taylor zinc-lead-silver project is expected to begin production in the second half of fiscal year 2028. The company has updated the project’s growth capital expenditure estimate to approximately USD 3.3 billion and expects it to have an operating life of 33 years.
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