KEY POINTS
- South32’s Gemco mine expects its first production by December.
- Worsley Alumina faces production challenges but maintains 2025 targets.
- South32’s debt was reduced from $723 million to $39 million after a major sale.
South32 has begun a phased restart of its Groote Eylandt manganese facility (Gemco), with the first production from the primary concentrator expected in the December quarter.
Gemco begins recovery after cyclone damage halted production
South32, which holds a 60% stake in Gemco in partnership with Anglo-American, suspended production at the Northern Territory mine in March after Cyclone Megan caused severe damage. In its first-quarter 2025 production report, South32 highlighted progress in dewatering efforts and ongoing investments in repairs and infrastructure. The company also received $100 million in external insurance recoveries during the quarter.
The production halt at Gemco significantly affected South32’s overall output, with first-quarter production dropping 61% to 597,000 tonnes, compared to 1.52 million tonnes in the same period last year.
Meanwhile, South32’s South African manganese operations saw a 12% increase in output during the same period, driven by strong mining performance. Maintenance for these operations is scheduled for the June 2025 half-year.
At Worsley Alumina in Australia, saleable production fell by 7% to 850,000 tonnes due to scheduled maintenance and bauxite supply delays caused by postponed mining approvals. Despite this, South32 has maintained its 2025 production target of 3.75 million tonnes, with plans to convert excess hydrate stocks into calcined alumina. Alumina sales also dropped by 15%, mainly due to shipment delays and lower product availability.
South32 expects the Western Australian Environment Minister to review the Worsley mine development project in December, with federal approvals expected to follow. While the Western Australian Environmental Protection Authority recommended approval in July, conditions imposed may pose challenges, leading South32 to file an appeal. The Western Australian government also deferred regulation of greenhouse gas emissions to the federal government’s safeguard mechanism, which South32 expects will be considered in the appeals process.
Strong start in aluminium and copper output, debt significantly reduced
According to a report by mining.com, CEO Graham Kerr said South32 had a strong start to the year, with aluminium output rising 3% to 298,000 tonnes, including 180,000 tonnes from South Africa’s Hillside. Copper-equivalent volumes from the Sierra Gorda mine in Chile increased by 20%.
Kerr also highlighted the sale of Illawarra Metallurgical Coal in Australia as a “major milestone,” which streamlined South32’s focus on commodities critical for a low-carbon future. The sale reduced the company’s net debt from $723 million to $39 million in the September 2024 quarter and strengthened its financial position, enabling growth in base metals and shareholder returns through an on-market share buy-back.
