South32 shares drop after withdrawing guidance for manganese
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More news: South32 shares have dropped nearly 3% to $3.03 in early trading on the ASX after the global miner withdrew its production guidance for the Australian manganese business.
It said operations at the Groote Eylandt Mining Company (GEMCO) remain suspended after Tropical Cyclone Megan swept through the region earlier this week. Initial assessments have identified flooding in mining pits and significant damage to the wharf and port infrastructure.
South32 withdraws manganese guidance after cyclone damage
The news: South32 has withdrawn guidance for its Australia manganese business as operations at its Groote Eylandt Mining Company (GEMCO) remain suspended due to the impacts of Tropical Cyclone Megan.
The numbers: South32 holds a 60% stake in GEMCO, which is one of the largest manganese ore producing mines in the world.
It had estimated full-year output of 3400 thousand wet metric tonnes (kwmt) from the operation in FY24.
The context: The global miner said initial assessments have identified flooding in mining pits, damage to a critical haul road bridge, and significant damage to the wharf and port infrastructure.
The company flagged suspension of operations earlier this week as the category one storm swept through the Gulf of Carpentaria. South32 said it would provide a further update in the March 2024 quarterly report.
What they said: "Further assessment of the full impact of the damage is ongoing and will inform recovery plans, with a view to returning to safe operations as soon as possible. Alternative shipping arrangements are also being evaluated," South32 said in an announcement.
The source: ASX announcement
