South32 reported record production from its manganese operations in the September quarter. Image: South32.
BY AMY BLOM
SOUTH32 has more than tripled metallurgical coal production in the first quarter of FY19 compared to the first quarter of FY18, according to its September quarter report.
Production at Illawarra rose to 1.5 million tonnes (mt) in the Q1 up from 494,000 tonnes in the previous year.
Despite the jump, South32 believed a significant increase in development rates was still required to sustain the operation of two longwalls in parallel at the Appin colliery from H2 FY20.
South32’s Australia Manganese division also achieved a record quarterly performance of 932,000 tonnes and an 8 per cent increase quarter-on-quarter in total manganese ore production as it continued to take advantage of strong market conditions.
South32 chief executive Graham Kerr said annual production guidance would be maintained for all of its operations.
“We finished the period with a net cash balance of $US679 million and additional funds in our manganese joint venture as our key commodity markets benefitted from robust demand and pricing,” Mr Kerr said.
“This strong financial position enabled us to acquire Arizona Mining and Eagle Downs, and to continue our $US1 billion capital management program.”
Mr Kerr said South32 had continued to make excellent progress in reshaping its portfolio.
“In addition to the two acquisitions, we continued to advance our 18 greenfields exploration projects and commenced the process to broaden and transform the ownership of South Africa Energy Coal.”
As at 19 October, South32 shares were at $3.76.
