South32 has leveraged its recent Sierra Gorda buy-in to deliver a 12 per cent increase in copper equivalent production in the first half (H1) of the 2022–23 financial year (FY23).
Sierra Gorda, the Chilean mine with which South32 purchased a 45 per cent stake in February 2022, delivered 44,900 tonnes of payable copper equivalent production in the December 2022 half year, which was benefited from higher average copper grades (H1 FY23: 0.45 per cent copper, H2 FY22: 0.42 per cent copper).
Payable copper equivalent production is calculated by aggregating revenues from payable copper, molybdenum, gold and silver, and dividing the total revenue by the price of copper.
South32 said its payable copper equivalent production guidance for FY23 remained unchanged at 89,000 tonnes.
The major miner also achieved record half-year manganese production, while its Cerro Matoso mine in Colombia 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.”
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 in October 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.”
South32 delivered a 17 per cent increase in quarterly metallurgical coal production, due to improved volumes and labour productivity as a result of a new industrial agreement at the Appin mine in New South Wales.