REG - South32 Limited - Illawarra Metallurgical Coal Impairment

South32Announcement

21/07/2021 07:00

RNS Number : 9477F
  
South32 Limited
  
21 July 2021
  
 





South32 Limited
(Incorporated in Australia under the Corporations Act 2001 (Cth))
(ACN 093 732 597)
ASX / LSE / JSE Share Code:  S32 ADR: SOUHY
ISIN:  AU000000S320
south32.net




21 July 2021
 
 
 
ILLAWARRA METALLURGICAL COAL IMPAIRMENT
South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) has undertaken a review as of 30 June 2021 of the carrying values of its assets in accordance with the Group's accounting policies and the accounting standards. As a result we will recognise a pre-tax impairment charge for Illawarra Metallurgical Coal (IMC) of US$728M (post-tax ~US$510M) with our FY21 financial results.  This charge reflects the increased approval uncertainty created by the NSW Independent Planning Commission's (IPC) decision to refuse our application for the Dendrobium Next Domain life extension project (DND project) and the resultant potential impact on the economics of the broader IMC complex. 
We have scaled back activity on the DND project while we consider alternative options following the IPC decision. This includes the commencement of proceedings in the Land and Environment Court of New South Wales (NSW) for a judicial review of the decision and the potential submission of an alternate mine plan to the NSW Minister for Planning and Public Spaces for determination of the project as State Significant Infrastructure. We expect to provide a further update before the end of the calendar year.
About us
South32 is a globally diversified mining and metals company. Our purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. We produce bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc at our operations in Australia, Southern Africa and South America. With a focus on growing our base metals exposure, we also have two development options in North America and several partnerships with junior explorers around the world.




Investor Relations


 




Alex Volante

T          +61 8 9324 9029

M        +61 403 328 408

E          Alex.Volante@south32.net


Tom Gallop

T          +61 8 9324 9030

M        +61 439 353 948

E          Tom.Gallop@south32.net




Media Relations


 




Miles Godfrey

M        +61 415 325 906

E          Miles.Godfrey@south32.net


Jenny White

T          +44 20 7798 1773

M        +44 7900 046 758

E          Jenny.White@south32.net




 
Further information on South32 can be found at www.south32.net.
 
Approved for release by Graham Kerr, Chief Executive Officer 

JSE Sponsor:  UBS South Africa (Pty) Ltd

21 July 2021

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