Spun out of BHP Billiton ‘South32’ vows for further investment in low carbon aluminium as profit mounts
On 17th February 2022, the mining and metals company, South32 with its headquartered in Perth, Western Australia reported a bumper first half with a 57% rise in revenue propelling profit surge, although the operational challenges remain.
The diversified mining company booked pretax profit for the six months to December 21, from pursuing operations of $1.46 billion, soaring from just $155 million from the previous year. This exhibited a 57% jump in revenue to $3.65 billion from $2.32 billion.
The Company stated, “South32's operating margin rose to 44% from 24% the year before, thanks to strong production and high operating leverage.”
Graham Kerr, the CEO of South32 said, “Our business is in excellent financial health and we have continued to reshape our portfolio, with the planned acquisition of a 45% stake in the Sierra Gorda copper mine [in Mexico], and further investment in green aluminium.”
South32 acquired a further 25% stake in Mozal aluminium from Mitsubishi Corp subsidiary MCA Metals Holding GmbH for USD250 million in September 2021, pushing its ownership of the smelter up to 72%.
The operation of Mozal Aluminium smelter located near Maputo, Mozambique is mutually owned by South32, Mitsubishi, the Industrial Development Corp of South Africa and the Mozambican government.
The miner and metal producer, South32 also indicated that operations pursued to be impeded by Covid-19 which was damaging worker availability.
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