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S32 - South32 News Story

A$2.86 0.1  2.1%

Last Trade - 5:11am

Sector
Basic Materials
Size
Large Cap
Market Cap £7.47bn
Enterprise Value £7.27bn
Revenue £4.11bn
Position in Universe 40th / 1831

UPDATE 1-Australia's South32 mulls Eagle Downs stake sale after halting development

Wed 20th January, 2021 11:00pm
(Adds Eagle Downs decision, manganese production, outlook)
    Jan 21 (Reuters) - Diversified miner South32 Ltd  S32.AX 
said on Thursday it was considering a possible divestment of its
50% interest in the Eagle Downs metallurgical coal project in
Queensland, after deciding to put its development on hold. 
    The company, which owns the project along with Chinese
steelmaking giant China BaoWu Steel Group Corp, said development
was halted as "expected returns (from the project) do not
currently support the allocation of capital."
    China BaoWu Steel did not immediately respond to a Reuters
request for comment. 
    South32 also reported an about 16% rise in second-quarter
coking coal output, as its flagship Illawara operation continued
to benefit from a return to a longwall configuration - a form of
mining where a long wall of coal is mined in a single slice.
    The world's largest manganese ore producer said output of
the commodity reached about 1.5 million wet metric tonnes (wmt)
in the December quarter, compared with about 1.4 million wmt a
year earlier.
    South32, which was spun off from mining giant BHP Group
 BHP.AX  in 2015, also increased the production outlook for its
Cannington project in Queensland state and its Cerro Matoso
project in Colombia, citing accelerated extraction and approval
for a new project, respectively.     
    
    

 (Reporting by Soumyajit Saha in Bengaluru; Editing by Devika
Syamnath)
 ((Soumyajit.Saha@thomsonreuters.com;))
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