South32 CEO, Graham Kerr, believes that China’s efforts to strengthen its economy will benefit the base metals market.
- South32, the world’s largest producer of manganese, sees China as its biggest customer for its products.
- Beijing’s focus is primarily on supporting the auto and home appliances sectors, which rely heavily on base metals like copper.
- South32 reported a 65% slump in full-year profit due to softer prices for its products, such as steel-making coal and aluminium, as well as rising costs.
- The company’s forecast for the next year shows increased costs at most of its mines due to safety and growth investments, leading to potential production estimate reductions.
- A workers’ strike at South32’s Illawarra metallurgical coal operations in Australia has not yet had a significant impact on production, according to Kerr.
- South32 posted an annual statutory loss of $173 million, attributing it to a one-off charge related to project delays and dewatering costs at its Arizona Hermosa project.