Australia Manganese, Worsley Alumina, Brazil Alumina, Mozal Aluminium and Cannington zinc all notched up record annual production.

Illawarra Metallurgical Coal hit a record annualised production rate of 10.1 million tonnes in the June quarter, thanks to increases in longwall utilisation and cutting rates.

Manganese alloy output was 46% lower due to market-related production cuts.

South32 CEO Graham Kerr said the company had built a strong foundation in its first year, despite a challenging market.

“We prioritised value over volume and took decisive action to restructure our operations, reduce controllable costs and improve efficiencies, whilst delivering two major projects on or ahead of schedule, and under budget,” he said.

The company delivered the Appin Area 9 metallurgical coal project and the Premium Concentrate Ore project at Australia Manganese on time and on budget.

“We continue to unlock our resource potential, having reached a landmark agreement with the Anindilyakwa Land Council to mine the Eastern Leases and explore the highly prospective Southern Areas at GEMCO,” Kerr said.

“An option agreement at the Huckleberry property in Canada also marks our first investment in base and precious metals greenfields exploration, and aligns with our strategy to identify opportunities beyond our current portfolio.”

The Perth-based major signed a joint venture with Toronto-listed junior Northern Shield Resources over the Huckleberry nickel-copper-platinum project in Quebec.

South32 can earn 50% of the project by spending $C2.5 million, and can move to 70% by spending a further $2.5 million.

Last month Kerr told the Melbourne Mining Club South32 would be disciplined in how it deployed capital, but was open to acquisition opportunities, particularly in base metals.

“However, looking at the high prices recently paid for copper assets, it is difficult to see how value will be created for shareholders,” he noted.

“So we look at all opportunities between the two book ends and if we can’t create value, we won’t do it.

“I am not convinced we are through the challenging price environment. I’m sure there is still more pain to come. So we can, and will, be patient.”

South32 shares have rallied by more than 70% this year, getting close to hitting $A2 last week. Shares last traded at $1.85.