South32 gets federal approval to extend Worsley Alumina mine
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The news: Diversified miner South32 has received federal environmental approval to extend the life of its Worsley Alumina mine in Western Australia.
The numbers: South32 shares lowered 0.6% to $3.41 by 12:50pm AEDT.
The context: South32 said that federal approval is subject to conditions consistent with the state environmental approval, received in December.
The miner said the project will enable access to bauxite to sustain production at Worsley Alumina, with mining of bauxite areas located near its existing operations expected to commence in the fourth-quarter of the current financial year.
South32 will also start the development of new mining areas that are expected to sustain production to at least FY36.
In December, the WA minister for environment agreed to amend environmental approval conditions that saw $827 million written off the value of the project earlier in the year.
One of Australia's largest aluminium producers, South32 saw its shares tumble this week as the US announced 25% tariffs on aluminium imports from 4 March.
What they said: "Worsley Alumina has been operating for more than 40 years and is one of the largest employers in the region, supporting jobs for thousands of workers and contractors," said South32 chief executive Graham Kerr.
The source: ASX announcement
