South32 has released its December 2022 quarterly report, with group copper equivalent production increasing by 12 per cent.
The company said it benefitted from transactions that have repositioned its portfolio toward metals critical for a low-carbon future.
South32 also achieved record half-year manganese production, while its South American Cerro Matoso mine successfully commissioned the Ore Sorting and Mechanical Ore Concentration project, underpinning a 15-year extension to the mining contract.
“Despite industry-wide inflationary pressures, we expect operating unit costs for the first half to be in line with or below guidance for the 2023 financial year at the majority of our operations,” South32 chief executive officer Graham Kerr said.
“We remain focused on delivering safe and stable operational performance, and efficiencies to mitigate cost pressures and capture higher margins as markets improve.”
November 2022 saw the death of two South32 employees who were fatally injured during maintenance work on a raising girder at the company’s Mozal Aluminium operation in Mozambique’s capital city, Maputo.
“Our deepest sympathies are with the families and colleagues of the deceased, to whom we have provided our support and counselling,” the company said in a statement.
“Key learnings from the incident are being shared across our organisation and within the industry. As an immediate step, additional controls were put in place for all raising girders at Mozal Aluminium and Hillside Aluminium.”
South32 reported a non-binding advisory resolution in relation to its Climate Change Action Plan (CCAP) being passed by shareholders at its annual general meeting on October 27 2022, with 89.6 per cent of the votes received in favour of the resolution.
The CCAP included a new goal of net-zero Scope 3 greenhouse gas emissions by 2050 and a commitment not to develop or invest in greenfield metallurgical coal projects.
“We remain focused on delivering safe and stable operational performance, and efficiencies to mitigate cost pressures and capture higher margins as markets improve,” Kerr said.
“We continue to reshape our portfolio toward metals critical for a low-carbon future, advancing construction work, studies and exploration at our high-quality development options.”