Key Points
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Hillside Aluminium production rose 1 percent in the September quarter.
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Mozal Aluminium faces power supply uncertainty beyond March 2026.
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South32’s 2026 production guidance remains firm despite challenges.
Production at South Africa’s Hillside Aluminium plant in Richards Bay, KwaZulu-Natal, rose slightly in the three months to September 30. Output increased by 1 percent to 181,000 tons as the smelter continued testing its technical limits, according to South32’s latest update.
Aluminium production remains stable
The company said its production forecast for the 2026 financial year remains unchanged at 720,000 tons. South32 noted that the Richards Bay operation continues to run efficiently while maintaining strong output levels.
At its Mozal Aluminium plant in Mozambique, saleable production rose by 3 percent to 93,000 tons during the same quarter.
The smelter operated close to full capacity but halted pot relining in August due to uncertainty over power supply beyond March 2026, when its electricity agreement expires.
South32 is in talks with the Mozambique government, Hidroeléctrica de Cahora Bassa, and South Africa’s Eskom to secure future power for Mozal.
The company warned that if supply cannot be guaranteed, Mozal may be placed on care and maintenance after March 2026.
Manganese production dips amid development work
South32’s saleable manganese output fell by 7 percent to 551,000 wet metric tons, mainly due to ongoing underground development at the Wessels mine in South Africa’s Northern Cape.
Despite the decline, full-year guidance remains unchanged at 2 million tons, with planned maintenance set for the current quarter.
The company recorded a 33 percent increase in overall manganese volumes, contributing $36 million of the $117 million received from equity-accounted investments during the quarter. The manganese business is expected to boost cash generation in the next quarter.
Financial position and climate strategy
South32’s net cash balance dropped by $59 million to $64 million in the September quarter. The company continued investing in its Hermosa growth project and received $117 million in net distributions from its Sierra Gorda and manganese ventures.
CEO Graham Kerr said South32 remains financially strong and focused on maintaining operational momentum while taking advantage of improving base metal market conditions.
Sierra Gorda, the company’s open-pit copper mine in Chile, increased its payable copper equivalent production by 12 percent, supported by higher copper grades and molybdenum output.
Earlier this year, South32 published its second climate action plan. The document outlines efforts to reduce emissions, support the global energy transition, and strengthen climate resilience across its operations.
