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| South32 |
Strategic Move to Ensure Long-Term Stability
South32, a leading Australia-based diversified metals producer, has received federal approval to extend operations at its Worsley alumina facility until 2036. The extension, granted on February 12, 2025, extends the plant’s operational life beyond its initial 2025 end date, reinforcing South32’s commitment to production stability and cost management.
Expansion Plans and Government Approvals
The decision follows approval from the Western Australian government in December 2024, which included conditions on greenhouse gas emissions and ecological impact. The Worsley facility refines alumina from locally mined bauxite ore, and South32 plans to expand its bauxite mining operations to sustain a steady production rate. By the end of the 2024-25 financial year, the company projects its share of alumina output to reach 3.75 million tonnes (mn t).
Cost Adjustments Amid Rising Expenses While the extension secures long-term production, South32 has raised its Worsley production cost guidance by 5.2%, increasing from $290 per tonne to $305 per tonne. The hike is attributed to higher costs for caustic soda, a crucial input in alumina refining. This reflects the broader challenges of rising operational expenses.
Positioning for Future Growth
The extension aligns with South32’s broader strategy, particularly as it faces disruptions at its Mozal Aluminium plant in Mozambique. While Mozal's operational issues have led to the withdrawal of its 2025 production guidance, Worsley’s stable and growing output strengthens South32’s position in the alumina market.
Since a 2008 expansion increased Worsley’s alumina production capacity from 3.25 mn t to its current level, the new extension underscores South32’s long-term commitment to sustaining production and market leadership.
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