Tag: South32

(Image source: South32.) South32's South Africa Manganese operation.

RocketDNA signs South32 contract in South Africa for drone surveying

RocketDNA Ltd (ASX: RKT) has signed a five-year contract with South32 (ASX: S32) via Hotazel Manganese Mines (PTY) LTD in South Africa for drone surveying services at two mine sites. The contract is with RocketDNA’s subsidiary, Rocketmine (Pty) Ltd, valued at $1.18m and annual recurring revenue of $236,000. South32’s manganese operation in South Africa is located in the Kalahari Basin, home to 80% of the world’s manganese. It is made up of the Metalloys manganese alloy smelter in Meyerton, Gauteng, which remains in care and maintenance, the open-cut Mamatwan mine and the underground Wessels mine. South32 reported increased production at its South Africa manganese operation by 5% year-to-date to 1.522mt in its recent March quarterly report and remains on-track to…

South32: In high demand

South32: In high demand

SOUTH32 is walking the fine line between increased production at Illawarra Metallurgical Coal and reassuring climate conscious shareholders it is closely monitoring trends in consumer and market behaviour around coal. Releasing a report titled Our Approach to Climate Change 2019, the company has completed decarbonisation concept studies at Illawarra Metallurgical Coal, with the aim of identifying potential decarbonisation initiatives, which can be progressed into prefeasibility planning during FY20. However, metallurgical coal demand is set to skyrocket from 275mt (in 2017) to 372mt by 2030 – according to the NSW Minerals Council – and Illawarra is expected to increase production to around 7mt by the end of financial year 2020 and 8mt by FY21. In the September quarter alone, the site…

Illawarra Metallurgical Coal: a flying start

Illawarra Metallurgical Coal: a flying start

BOTH the 2019 half year results and March quarter results for South32 bode well for the year ahead, with chief executive Graham Kerr confident of an achievable production guidance for 2019. “For the full year we’ve increased production guidance at Illawarra Metallurgical Coal by 7 per cent with production guidance unchanged for all other operations,” he said. “We’ve also lowered unit cost guidance for most operations as we maintain operating discipline and benefit from a stronger US dollar.” Saleable production at Illawarra for the March quarter increased by 68 per cent and 2033kt to 5Mt in the nine months ended March 2019, and was set to produce 6.5kt as it started on the extraction of new panels at both Appin…

South32 posts record production

South32 posts record production

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…

South32: Fresh Development

South32: Fresh Development

All images: South32. BY REUBEN ADAMS AS South32 enjoys strong margins for all of its key commodities in 2018, the global miner is making good on promises to invest capital into savvy brownfields and greenfields opportunities. The June quarter was a good one for South32, which has finished FY18 on a strong note. In Australia, the miner reported record production from its manganese operations, as the world’s number one producer of the steel ingredient lifted output to take advantage of better prices. Progressing through a higher grade stope sequence at the world-beating Cannington silver-lead mine in QLD in the quarter saw payable silver, lead and zinc production increase by 37 per cent, 33 per cent, and 45 per cent respectively.…

South32 buys $110m Arizona Mining stake

South32 buys $110m Arizona Mining stake

The Hermosa zinc-lead-silver project. Image: Arizona Mining. BY CAMERON DRUMMOND SOUTH32 will pay $C110 million ($107m) for a 15 per cent stake in Canadian multi-commodity miner Arizona Mining. Under the agreement, South32 will acquire 45,000,000 Arizona Mining shares at $C2.45 per share. South32 also has the right to nominate a director to the board of Arizona Mining providing it maintains a minimum 12.5 per cent interest. Arizona Mining is focused on its Hermosa zinc-lead-silver project, which includes the Taylor deposit, located in Santa Cruz County, Arizona. South32 chief executive Graham Kerr said Hermosa was a highly prospective project and was another step in the company’s strategy to identify opportunities outside of its current portfolio. “We look…

South32 scraps Metropolitan Colliery buy

South32 scraps Metropolitan Colliery buy

Peabody Energy’s Metropolitan Colliery. Image: Peabody Energy BY CAMERON DRUMMOND BHP Billiton spinoff South32 has scrapped its $US200 million purchase of Peabody Energy’s Metropolitan Colliery and associated port infrastructure near Wollongong, NSW. On 23 February, the Australian Competition and Consumer Commission (ACCC) released a statement saying the proposed acquisition could substantially lessen competition in the coking coal supply to Australian steelmakers, as it would leave South32 as the only major supplier in the region. “The ACCC considers that competition is necessary for customers in a region to obtain export price parity,” the competition monitor wrote. “If there is a single exporter in a region, that supplier will likely set the price to local customers to match the…

South32 and explorer form alliance

South32 and explorer form alliance

AusQuest carrying out works at its Fraser Range prospects. Image: AusQuest. By Elizabeth Fabri SOUTH32 has signed an agreement with AusQuest to develop high-potential exploration opportunities in Australia and overseas targeting copper, zinc and nickel. Under the deal, South32 would fund exploration activities over at least five AusQuest projects in Australia and Peru, which would be offered exclusively to South32 over a three year time frame, subject to financial conditions. Projects of interest included Jimberlana and Balladonia/Gibson Soak nickel-copper projects and the Blue Billy Project in WA, and Chololo and Los Otros porphyry copper prospects in Peru.AusQuest said a work program and budget to advance each project to a drill-ready stage would be agreed by the parties and South32 would…