South32’s Mozal and South Africa Aluminium smelter boast record aluminium production in Q4 2017

Triple-listed diversified miner South32 on Wednesday reported that, the company had achieved its guidance for all its operations during the December quarter. Its manganese and aluminium operations, in particular, exceeded expectations, owing to strong market demand.

South32 also managed to deliver another production record at its Mozal Aluminium operation in the second half of 2017. Despite a power fault in November 2017, which impacted 36 pots; South Africa Aluminium remained on track to increase production in 2018.

Mozal Aluminium’s shipment increased by 1% to a record 137,000 tonne in the second half of 2017, as the smelter continued to operate at its maximum technical capability. Total sales volume increased by 10% as the inventory position returned to normal levels. The aluminium working capital position remained elevated. Full-year production guidance stands at 269,000tonnes. 

South Africa Aluminium’s saleable production increased 1% to 358,000 tonnes in the second half of the year. The pots are being progressively returned to service during the current quarter. A temporary increase in finished goods inventory related to South32’s shipping schedule is expected in this running quarter.

As for alumina is concerned, Brazil Alumina’s saleable production increased 3,000 tonnes to 676,000 tonnes in the second half of 2017, as the refinery continued to operate at full capacity. The company’s production guidance remains unchanged at 1.3-million tonnes.

“In accordance with our disciplined capital management framework, we paid our $333-million final dividend in respect of the financial year ending in October 2017 and purchased a further 37-million shares for a cash consideration of $93-million during the December 2017 half-year,” Kerr said.

South32 also invested $23.9-million in brownfield and greenfield exploration programmes during second half of 2017. The investment covers equity accounted investments and expenditure associated with its high-quality exploration opportunities.