PERTH (miningweekly.com) – Diversified miner South32 has reported an increase in alumina and metallurgical coal production during the fourth quarter ended June, along with silver and lead production, while production for all other commodities was down on the previous quarter.

“Our priority remains keeping our people safe and well, maintaining reliable operations and supporting our communities through the Covid-19 pandemic,” said CEO Graham Kerr on Monday.

“Despite the health crisis, we delivered a strong operating result, highlighted by annual production records at Brazil Alumina, Hillside Aluminium and Australia Manganese Ore. We have continued to see good demand for our products, with sales exceeding production at the majority of our operations,” he added.

Alumina production for the fourth quarter was up by 6% on the previous quarter, to 1.35-million tonnes, and up by 4% in the full year to 5.2-million tonnes.

Aluminium production in the quarter remained stable at 245 000 t, and during the full year, at 986 000 t.

Energy coal production for the quarter dipped by 3% and for the full year was down by 8%, reaching 5.6-million and 24.1-million tonnes respectively, while metallurgical coal production in the quarter was up by 31%, to 1.5-million tonnes, and by 4% in the full year, to 5.5-million tonnes.

Manganese ore production in the quarter was down 6%, to 1.2-million tonnes, and down 3% in the full year to 5.3-million tonnes, while alloy production was down 11% in the quarter to 34 000 t, and down 27% in the full year to 163 000 t.

Nickel production for the quarter reached 9 700 t, and 40 600 t in the full year, while silver production in the quarter was 3.1-million ounces, and 11.7-million ounces in the full year. Lead production in the quarter reached 30 100 t, up 20%, while full year production was up 9% to 110 400 t, while zinc production declined 2% in the quarter to 16 900 t, but was up by 29% in the full year to 66 700 t.

“With uncertainty remaining in the global markets, we continue to manage our financial position to ensure we retain the right balance of flexibility, efficiency and prudence. We acted to protect our strong balance sheet by adjusting our capital expenditure priorities, suspending our on market share buy back and extending the tenor of our $1.45-billion revolving credit facility,” Kerr told shareholders.

“Our strong balance sheet and simple capital management framework are designed to reward shareholders as our financial performance improves.

“Looking forward, we remain focused on reducing controllable costs, managing counterparty and supply chain risks and optimising working capital to ensure the business remains resilient during a potentially extended period of volatility and lower commodity prices.”