Alumina and aluminium output for the quarter was steady, as was metallurgical coal and manganese ore output.

Manganese alloy production jumped 23%, energy coal production was up by 13%, while lead and zinc production at Cannington dropped by 13% and 14% respectively due to a significant decrease in grades ahead of the extraction of high-grade stope 60L.

For the full-year, a record performance at Mozal Aluminium led to a 2% increase in aluminium production, while manganese ore production was up by 5%.

“We delivered record annual production at Mozal Aluminium and stronger aluminium volumes overall as both of our smelters continued to operate at their maximum technical capability,” South32 CEO Graham Kerr said.

“While we didn’t achieve the level of consistency that we expect from our broader portfolio, our alumina, nickel and manganese operations finished the year on a strong note.”

Illawarra Metallurgical coal production was down by 15%, with record run-of-mine production at Dendrobium not enough to offset outages at Appin.

Appin remains suspended while a review is undertaken.

“Production at the Illawarra Metallurgical Coal Appin colliery remains suspended as a comprehensive review of the operation’s systems and processes is undertaken,” Kerr said.

“This in depth review has been designed to ensure the operation restarts safely and reliably.”

The company spent US$28.8 million on exploration in the 2017 financial year, including $13.4 million on greenfields, which was largely made up of a $10 million investment in Trilogy Metals’ drilling program.

“We will continue to invest in high quality opportunities where we see value, having acquired a 15% interest in Arizona Mining for $81 million during the quarter,” Kerr said.

“We also allocated $211 million towards our share buy-back program as our balance sheet continued to strengthen.”

South32 will provide FY18 guidance next month.

 

Shares in South32 fell by nearly 2% to A$2.785.