Mozambique: Australia’s South32 on track to increase its ownership of Mozal to 63.7% by the end of March

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Mozambique: Australia’s South32 on track to increase its ownership of Mozal to 63.7% by the end of March

12:54 CAT | 24 Jan 2022

South32 said it is on track to increase its ownership of the Mozal aluminium smelter to 63.7pc by the end of March.

South2«32 gains from higher aluminium sector prices.

Australian diversified resources firm South32 benefited from higher realised prices across its aluminium sector portfolio in July-December, the first half of its 2021-22 fiscal year, offsetting marginally lower output.

Aluminium output of 494,000t from its South African and Mozambican smelters was 2,000t lower on the year, but the average realised price of $2,952-3,041/t covering both operations was 57pc higher than the first half of 2020-21 and 24pc higher than the second half of 2020-21, the Perth-based firm said.

South32 has maintained full-year 2021-22 guidance of 720,000t for its Hillside smelter in South Africa and 273,000t at its Mozal smelter in Mozambique and expects to produce 5,000t in April-June from its 40pc share of the Alumar smelter in Brazil, which is being restarted by controlling shareholder Alcoa following seven years on care and maintenance. South32’s share of production will rise to around 140,000t in 2022-23.

It has also maintained full-year guidance of 5.26mn for alumina, although its alumina output of 2.61mn t in Australia and Brazil was 4pc lower in July-December than a year earlier. Average realised alumina prices of $387-$389/t were 40pc higher on the year and 26-30pc higher than the second half of 2020-21.

Full-year guidance for output from the multi-commodity Cannington mine in Queensland, Australia has been raised by 5pc to 292,200t of payable zinc equivalent following production of 151,500t in July-December, 9pc higher on the year. Zinc output totalled 32,700t in the first half of 2021-22, up by 8pc on the year. Lead output of 60,200t was 5pc higher on the year and silver production of 6.71mn oz was 12pc higher on the year.

The average realised price of $2,988/t for zinc was 34pc higher on the year and 21pc higher than the first half of 2020-21, while the lead average realised price of $2,180/t was 25pc higher on the year and 11pc higher than the first half of 2020-21.

Payable nickel output of 20,300t at the Cerro Matoso operation in Colombia for July-December was 26pc higher on the year following furnace maintenance, and is on track to achieve full-year guidance of 43,800t. The average realised nickel price of $8.39/lb was 33pc higher on the year and up by 19pc from the first half of 2020-21.

South32 said it is on track to increase its ownership of the Mozal aluminium smelter to 63.7pc by the end of March, complete the acquisition of a 45pc stake in the Sierra Gorda copper mine in Chile by the end of March and raise its ownership of the MRN bauxite mine in Brazil to 33pc in April-June.

By Angus Macmillan

Our teams around the world achieved a number of strong production results across our portfolio during the first half of the financial year. Find more in our December Quarterly Report, released today: https://t.co/YQpLYK7ORi #Ausbiz #South32 #S32 pic.twitter.com/h4UAr3JvSO

— South32 (@South_32) January 23, 2022