Mining and metals company South32, listed on the Johannesburg, Sydney and London stock exchanges, reported on Monday 20 January a strong enough start to the year to maintain production targets at all its operations, with the exception of Mozal Aluminium in Mozambique, where the company is seeking to mitigate the impacts of social instability.
According to an article published on the Mining Weekly news portal, the last quarter of 2024 saw an increase in the production of base metals, particularly South African manganese, whose production is expected to exceed the financial target for 2025 (FY25), set at two million tonnes, by 5%.
The company, led by CEO Graham Kerr, returned 10.6 billion meticals (169 million dollars) to shareholders through a share buyback programme on the market, leaving a further 10.8 billion meticals (171 million dollars) for distribution under the capital management plan.
In addition, the sale of its metallurgical coal subsidiary, Illawarra, in September 2024 strengthened the company’s balance sheet and expanded its capacity to invest in minerals and metals crucial to the global energy transition.
Investments and Global Production
In the last quarter, South32 advanced with the digging of wells to access the Hermosa zinc, lead and silver deposit, located in Arizona, USA. At the same time, it intensified exploration efforts at the Clark battery-grade manganese deposit and the Peake copper deposit, with the aim of unlocking more value in its assets.
The company’s global aluminium production grew by 5% in the last half year, driven by the performance of Hillside Aluminium in South Africa, which continues to operate at full technical capacity. In addition, production of low-carbon aluminium at Brazil Aluminium and Mozal Aluminium increased by 12%.
Challenges in Mozambique
Despite the overall growth, Mozal Aluminium faces significant challenges in Mozambique, stemming from the social unrest affecting the operating environment. The company did not specify the measures it is taking, but emphasised that the stability of the operation in the country will be a priority in order to achieve its production targets.
Mozal is one of Mozambique’s main exporters and plays a strategic role in the local economy, generating jobs and tax revenues. However, the impacts of instability may have compromised its economic contribution and the country’s position as a regional player in the aluminium industry.
Hillside Aluminium, the largest aluminium smelter in the southern hemisphere, increased its production by 1%, reaching 362,000 tonnes in December 2024, and maintains its annual target of 720,000 tonnes for FY25. In Australia, Worsley completed maintenance on its calciner, while Brazil Aluminium benefited from increased operational availability.
South32 continues to strengthen its diversification strategy, exploring new deposits and optimising its existing operations, but local challenges, such as those faced by Mozal Aluminium, demonstrate the importance of stability to sustain growth.
