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【Ferro-alloys.com】:  Although saleable production of aluminium from the Hillside Aluminium smelter in South Africa’s KwaZulu-Natal decreased by 1% to 537 000 t in the nine months ended March, the full-year guidance of South32’s largest aluminium producer remains unchanged. Importantly, Hillside’s production guidance for the full financial year ending June 30 continues to be predicted at 720 000 t.

The 1% decrease took place amid the smelter continuing to test its maximum technical capacity, Johannesburg Stock Exchange- and Sydney-listed South32 – Hillside’s 100% owner – reported on Thursday, April 17.

In Mozambique, South32 is working with South Africa’s State-owned power utility Eskom and the government of the Republic of Mozambique to extend the hydro-electric power supply to the Mozal Aluminium smelter beyond March 2026, as there are currently no viable alternative suppliers of renewable energy at the required scale.

“We remain focused on finalising a new energy supply agreement during this calendar year to enable the smelter to continue to operate and maintain its substantial contribution to the economy of Mozambique,” South32 stated in a release to Mining Weekly.

Sales from Mozal Aluminium decreased by 18% in the March quarter as the operation managed product availability following the decision in the prior quarter to temporarily reduce amperage to the smelter to manage raw material stocks. A drawdown of inventory in the three months to June 30 is now expected, with full-year production guidance remaining at 350 000 t.

MANGANESE FROM NORTHERN CAPE

Following planned maintenance at the Northern Cape’s Mamatwan manganese mine in the March quarter and a temporary shut at Wessels in the prior quarter, saleable production from South32’s South Africa Manganese decreased 5% to 1 558 000 wet metric tons (wmt) in the nine months ended March 31.

While sales decreased by 18% in the March quarter as port congestion impacted the timing of shipments, full-year guidance remains intact at 2 000 000 wmt.

Overall, March quarter net cash rose by $299-million to $252-million on operational performance, and production highlights year to date include an 18% increase in copper and a 6% increase in aluminium as Mozal Aluminium managed the impacts of civil unrest in Mozambique and approached nameplate capacity in the quarter.

In Australia, the Worsley mine development project has begun following environmental approval by the Australian government, and resumption of export sales from Australia Manganese remains on track for the June quarter.

In the US, construction of the Taylor zinc/lead/silver project at Hermosa continues, with sinking of the main shaft on track to begin in the June quarter.

“Looking ahead, our focus on operating discipline, active cost management and a strong balance sheet leaves us well positioned to manage a period of potential uncertainty in global markets,” South32 CEO Graham Kerr commented.

Greenfield exploration targeting base metals in Namibia, Australia, the US, Canada, Argentina, and Ireland has attracted an investment of $26-million, and $48-million has been invested in other exploration programmes at existing operations, in the nine months ended March 31.

• [Editor:Alakay]