PERTH (miningweekly.com) – Diversified miner South32 has reported a solid first quarter for its 2020 financial year, noting increased production at a number of its operations.

“We have maintained annual production guidance for all of our operations with a strong start to the year at our alumina refineries, a 30% increase in production at Illawarra metallurgical coal, and a 10% increase in manganese ore production,” said CEO Graham Kerr on Thursday.

Alumina production for the first quarter remained consistent at 1.3-million tonnes, compared with the June quarter, while aluminium production increased by 1%, to 248 000 t.

South32 reported record production from its Brazil alumina operation, which saw production increase by 14% to 356 000 t, while the Worsley alumina operation also delivered a strong quarter as the miner delivered on initiatives to sustainably increase nameplate capacity.

Metallurgical coal production was up 29% on the previous quarter, to 1.65-million tonnes, as the Illawarra operation reported a 30% increase in production following the successful completion of two longwall moves in the June quarter.

Energy coal production declined by 4% in the September quarter, to 6.7-million tonnes, on the back of lower equipment availability at the Klipspruit operation, in South Africa, and as preparations are made for the upcoming wet season.

Meanwhile, manganese ore production was up by 10% on the previous quarter, to 1.4-million tonnes, with manganese ore production from the Australian operation increasing by 21% as weather conditions in the region improved.

Manganese alloy production was down by 29%, to 44 000 t in the same period.

South32 also reported on Thursday that nickel production for the quarter remained unchanged at 10 600 t, silver and lead production were down by 9% and 6% respectively, to 2.9-million ounces and 26 500 t, while zinc production was up by 26%, to 18 400 t.

“With macro conditions creating headwinds for our key commodities, we remain focused on driving costs and operating performance across our portfolio,” Kerr said.

“Our disciplined approach to capital allocation has allowed us to return a further $74-million with the continuation of our $1.25-billion capital management programme, and following the end of the quarter pay our $139-million ordinary dividend in respect of the prior six months.”

Kerr said that South32 remained on track to finalise the divestment transaction of the South African energy coal business to Seriti Resources in the coming quarter.