Stock and production gains for South32 as cyclone, civil unrest damage contained
Record rainfall and blustering winds from tropical cyclone Megan tore through S32's Groote Elyandt mine and wharf in the Northern Territory in March last year and halted operations.
S32 clarified on Monday that the operation had performed better than expected for the 2025 financial year after restarting last quarter, delivering 1.1 million wet metric tonnes, and would be back at full pelt for the next 12 months.
'Export shipments recommenced in the quarter as planned, following completion of the wharf construction in May 2025. Shipping rates are expected to reach full capacity in the September 2025 quarter.'
Insurance payments received by S32 and joint venture partner Anglo American for the clean-up stood at $US350m ($537.8m).
Despite operational recoveries the mine is expected to book an underlying earnings before interest depreciation tax and amortisation loss of up to $US120m ($184.4m) for the year due to the weather setbacks.
Meanwhile the miner's Mozal aluminium operations in Mozambique have slowly been returning to steady production after civil turmoil engulfed the country following the outcome of its election in October last year.
The group's aluminium production was up 6 per cent during the final quarter of 2025, and alumina production landed within guidance.
The smelter operated 'near nameplate capacity' in the June quarter. However, energy supply issues mean the miner hasn't been able to pin down definite output figures for the coming year.
'Given the uncertainty of operating beyond March 2026, FY26 production guidance remains under review.'
Years of talks with the southern African nation's government
to power the smelter beyond that date
have so far failed to yield a deal for the project, which last financial year turned over more than $800 million.
S32 has already disclosed there is likely to be an impairment stemming from the uncertainty.
Closer to WA S32 has started mining new bauxite areas at its Worsley mine after securing environmental approvals at the end of 2024.
Operating costs are expected to fall in line with projected guidance.
S32 shares were up 4.84 per cent by 12.25pm at $3.03.
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The Advertiser
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Ms Taylor said about 32 per cent of Australia's milk was currently exported. She said while countries including Japan and China were processing more of their own milk, demand for Australian products would continue because of the high-cost to those countries to produce it. Ms Taylor said innovative dairy products from Australia would also continue to be in high demand. She said the nation had a great reputation for being a reliable supplier of quality products. In 2023-24, Australian producers exported about $1 billion worth of dairy products to China, $1 billion to Southeast Asia and about $500 million to Japan. "The Middle East is another one where are dairy products are in demand," she said. "We find that Australian dairy ends up in about 100 countries." Ms Taylor said exporting products could be a good way for farmers to add another revenue stream. "It's important dairy farmers know that export offers very valuable, long-term options," she said. Ms Taylor said there had been questions asked about whether China's demand would continue. "China is producing much more milk than it ever has, and the economy is still a bit soft, but it's a long-term game," she said. "What we will see, I think, is that China will continue demanding high-value added products like cheese or frozen-milk concentrate that they may not be able to supply themselves. "Producing milk in China is a very expensive thing to do. "We should be confident that there will always be a demand for Australian dairy." Dairy farmers have been asked to consider exporting more of their products to boost profitability. Dairy Australia's sustainable international trade senior manager Catherine Taylor said there was growing international demand for Australian dairy products. She said it was believed there would be a deficit of up to 30 million tonnes by 2030 across the globe, based on supply and demand. 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"Producing milk in China is a very expensive thing to do. "We should be confident that there will always be a demand for Australian dairy."
Sydney Morning Herald
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Beyond tours, Intrepid Travel is now opening its own hotels and resorts
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The Age
12 hours ago
- The Age
Beyond tours, Intrepid Travel is now opening its own hotels and resorts
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