South32, the global mining giant headquartered in Perth but with significant operations in South Africa, has staged a remarkable recovery from last year’s setbacks, achieving a 33 per cent surge in manganese output for the first quarter of the 2025 financial year. As reported by BusinessLive, this milestone follows a $50 million investment to restore operations battered by Tropical Cyclone Megan in early 2024. The success has bolstered the company’s share price and strengthened its position to accelerate investment in its flagship Hermosa project in the United States, a cornerstone of its long-term growth strategy.
The cyclone’s devastation forced South32 to temporarily halt its Australian manganese operations, with infrastructure damage disrupting production for much of 2024. According to Mining Weekly, the company’s $47 million recovery plan, complemented by $350 million in insurance payouts, enabled a swift turnaround. By the quarter ending September 2025, the Australian manganese unit had nearly doubled its output from July to September, with export shipments resuming at full capacity. This rebound not only offset a full-year loss exceeding $100 million but also restored South32’s status as the world’s leading manganese producer, a critical supplier for steelmaking and battery manufacturing.
Investor confidence reflected this operational triumph, with South32’s shares climbing approximately 3 per cent in early trading following the announcement, despite later moderating, as noted by Reuters. The recovery has freed up resources for the company’s broader ambitions, particularly its Hermosa project in Arizona. As detailed in a South32 trading update, the company allocated $160 million to Hermosa in the September quarter, building on $517 million invested in the prior financial year—nearly quadruple the previous year’s expenditure. Hermosa, the only advanced US mine capable of producing both zinc and manganese—minerals deemed critical by the US government—positions South32 at the forefront of the clean energy transition. The project’s Taylor zinc-lead-silver deposit and Clark battery-grade manganese deposit remain on track, with exploration work set to conclude by December 2025.
Beyond Hermosa, South32 is advancing a diverse portfolio of exploration and development projects. The company invested $82 million in group capital expenditure during the quarter, including its Ambler Metals joint venture in Alaska, which focuses on copper, zinc, and silver deposits. According to The Financial Times, a recent $17.8 million stake acquired by the US Department of Defense in South32’s Ambler partner highlights the strategic importance of securing domestic critical minerals, aligning with US efforts to bolster clean energy and national security. South32 confirmed that proceeds from this deal would be reinvested into the Alaskan project, further strengthening its growth pipeline.
In other operations, South32 reported a 12 per cent increase in copper output from its 45 per cent-owned Sierra Gorda mine in Chile, as per Mining.com. Closer to its South African roots, the Hillside Aluminium smelter in Richards Bay—the largest in the southern hemisphere—saw a 1 per cent production rise, testing its maximum technical capacity, according to Engineering News. However, challenges loom in Mozambique, where the Mozal aluminium smelter faces care and maintenance status in 2026 due to rising energy costs. Business Day reported that this decision threatens 5,200 direct jobs and 22,000 indirect roles, given Mozal’s role as Mozambique’s largest industrial employer, contributing 30 per cent of manufacturing output and over 3 per cent of national GDP.
South32’s recovery underscores its resilience in navigating natural and economic challenges while positioning itself as a key player in the global critical minerals market. With manganese production back on track and strategic investments like Hermosa and Ambler gaining momentum, the company is poised to capitalise on growing demand for materials essential to decarbonisation and industrial growth. Yet, the looming Mozal closure highlights the delicate balance between profitability and social impact in the mining sector, particularly in regions heavily reliant on such operations. As South32 continues to expand its global footprint, its ability to sustain operational excellence while addressing regional challenges will shape its trajectory in the years ahead.