South32 Lowers Australia Manganese Output Forecast as Cyclone Damage and Middle East Tensions Drive Cost Pressures
Diversified mining group South32 has reduced its full-year production forecast for its Australia Manganese operations following significant disruptions caused by heavy seasonal rainfall and a tropical cyclone earlier this year.
The company announced on 22 April that it now expects fiscal 2026 manganese production from its Australian operations to reach approximately three million tonnes, representing a reduction of more than 6% from its previous guidance.
Operations were temporarily suspended in March after Tropical Cyclone Narelle affected the Gemco manganese mine in Australia’s Northern Territory, forcing the evacuation of non-essential personnel and interrupting production activities.
In addition to weather-related disruptions, South32 warned that ongoing geopolitical tensions in the Middle East are contributing to higher global freight rates and rising input costs, factors expected to place upward pressure on operating expenses for the remainder of the financial year.
The company said it has implemented contingency measures across its operations to manage potential supply chain risks linked to the conflict.
“While we are not currently experiencing diesel fuel shortages, we continue to closely monitor the situation and assess potential impacts on logistics and operating costs,” the company said.
South32 noted that sustained cost pressures could affect operating unit costs at key assets, including its Worsley Alumina operation in Australia and its Brazil Alumina operations, should global supply chain disruptions persist.
During the March quarter, the Australia Manganese operation produced 589,000 tonnes, compared with no production in the same period last year, when the primary concentrator remained offline after stockpiles were built up ahead of the wet season.
Meanwhile, manganese production from South32’s South African operations increased to 500,000 tonnes from 476,000 tonnes in the corresponding period, despite scheduled maintenance activities during the quarter.
Combined manganese output from the company’s Australian and South African operations reached approximately 1.09 million tonnes in the March quarter, up significantly from 476,000 tonnes a year earlier, although production fell short of market expectations of about 1.25 million tonnes.
South32 said it will continue to monitor weather patterns, logistics conditions and global market developments as it works to stabilise production and manage costs across its international operations.
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