South32 withdraws guidance for Australia Manganese as it assesses cyclone damage

Diversified miner South32 has withdrawn guidance for Australia Manganese while it assesses the damage caused by a tropical cyclone on its operations at Groote Eylandt Mining Company.

Operations at Gemco remain temporarily suspended due to the effects of Tropical Cyclone Megan, it said on Wednesday.

Located on an island in Australia’s Gulf of Carpentaria, Gemco produces high-grade manganese ore.

“The safety of our people and the community on Groote Eylandt remains our highest priority. Importantly, our workforce is safe and there have been no recordable injuries to personnel at the operations,” it said in a statement.

As weather conditions have eased, access to key infrastructure has been restored to enable an initial assessment of impact.

“Initial assessments have identified flooding in the mining pits, as well as significant damage to a critical haul road bridge that connects the northern pits of the Western Leases mining area and the processing plant. Significant structural damage to the wharf and port infrastructure has now also been confirmed,” it said.

Further assessment of the full impact of the damage would inform recovery plans, with a view to returning to safe operations as soon possible. Alternative shipping arrangements were also being evaluated, it said.

“While we complete this work, we are withdrawing guidance for Australia Manganese and will provide a further update in our March 2024 quarterly report,” it said.

The Perth-based miner, which was spun off from BHP in 2015, is the world’s biggest producer of manganese. The group’s operations in Southern Africa include SA Manganese and Hillside Aluminium in SA, and Mozal Aluminium in Mozambique. It also operates in Australia and South America.

mackenziej@arena.africa