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South32 has reported increased production across Australian manganese and alumina operations in the September 2026 quarter, while maintaining full-year production guidance across its portfolio and continuing investment in base metals growth projects.
Australia Manganese saleable production rose 15 per cent quarter-on-quarter to 902,000 wet metric tonnes, as higher utilisation of the primary processing circuit followed the easing of heavy rainfall in the previous quarter.
South32 chief executive officer Matt Daley said manganese had made a strong start to the financial year.
“Manganese had a strong start to the year, with production increasing by 14 per cent as Australia Manganese benefitted from improved operating conditions following the wet season and South Africa Manganese lifted underground productivity at Wessels,” he said.
The company maintained Australia Manganese production guidance for the 2026-26 financial year (FY27) at 2.65–2.9 million wet metric tonnes. However, FY28 guidance remains subject to the receipt of required approvals and installation of additional water management infrastructure.
At Worsley Alumina in Western Australia, saleable production increased two per cent to 966,000 tonnes, supported by improved bauxite supply to the refinery. Full-year production guidance remains unchanged at 3.9 million tonnes, with both South32’s alumina refineries operating near nameplate capacity.
Cannington in Queensland recorded a weaker quarter, with payable zinc-equivalent production falling 27 per cent to 59,200 tonnes after a temporary reduction in paste backfill availability delayed access to planned stopes.
Daley said the operation had processed lower-grade stockpiles to offset reduced mining rates.
“At Cannington, we successfully processed lower-grade stockpiles to mitigate lower mining rates caused by a temporary reduction in paste backfill availability,” he said.
South32 maintained Cannington‘s FY27 production guidance at 290,000 tonnes of zinc equivalent, with upgrades to the paste delivery system expected to support higher mining rates over the remainder of the financial year.
The company also reported net cash of $US297 million ($426 million) at the end of September, up $20 million during the quarter. The result included a $219 million distribution from its 45 per cent investment in Sierra Gorda in Chile, alongside continued growth spending and a temporary increase in working capital.
South32 invested $282 million in growth capital expenditure at its Hermosa project in the United States, advancing construction of the Taylor zinc-lead-silver project.
Both shafts are expected to reach the primary production level in the December 2026 quarter.
Daley said the company had maintained production guidance across its operations while achieving key development milestones for its copper and zinc growth projects.
Meanwhile, South32 shareholders approved the sale of the company’s aluminium value chain assets to Alcoa on October 15.
The transaction remains on track for completion in the June 2027 half-year, subject to outstanding conditions and regulatory approvals.
South32 said the sale would reposition the company as an upstream base metals-focused business, with high-margin assets and growth opportunities.
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