Samancor Manganese JV Announcement

RNS Number : 0993G

South32 Limited

18 November 2015

 

18 NOVEMBER 2015

South32 Limited

(Incorporated in Australia under the Corporations Act 2001 (Cth))

(ACN 093 732 597)

ASX / LSE / JSE Share Code: S32
ISIN: AU000000S320

South32 Limited

SAMANCOR MANGANESE JOINT VENTURE ANNOUNCES EXTENDED
CLOSURE OF ITS SOUTH AFRICAN MINES

South32 Limited (ASX, LSE, JSE:  S32) ("South32"), as 60% owner and manager of the Samancor Manganese Joint Venture, advises that the joint venture's South African mines will remain closed until the completion of the ongoing strategic review.  Production was suspended following a fatality at the Mamatwan mine on 2 November 2015.

As a major employer in the region, the planned reconfiguration of the Samancor Manganese mines in the Kalahari basin is required to secure their longer term viability in an increasingly competitive market.  The current stakeholder consultation process is continuing and mining activity is likely to recommence in January 2016.

While production will be significantly impacted in the 2016 financial year, rail and customer commitments will be met by drawing down inventory during this period.  A further update for the joint venture's South African manganese mines and Metalloys smelter will be provided upon completion of the strategic review.

Samancor Manganese is the world's largest producer of manganese with operations in South Africa and Australia.  Its Australian operations include GEMCO, an open-cut manganese mine in the Northern Territory, ranked as the largest and one of the world's lowest cost manganese ore producers, and TEMCO, a manganese alloy plant in Tasmania.  The joint venture's African operations include the Hotazel Manganese Mines located in the Kalahari Basin in South Africa's Northern Cape Province, a region that holds 80 per cent of the world's manganese resource endowment.  Its African operations also include Metalloys, a smelter that is integrated with the Hotazel Manganese Mines, creating an alternative logistical route for manganese into the export markets.

INVESTOR RELATIONS
Leng Lau T     [phone] M    [phone] E     [e-mail]	Susie Bath T     [phone] M    [phone] E     [e-mail]	Paul Formosa T     [phone] M    [phone] E     [e-mail]
MEDIA RELATIONS
Jill Thomas          T      [phone] M     [phone] E     [e-mail]

Further information on South32 can be found at www.south32.net.

JSE Sponsor:  UBS South Africa (Pty) Ltd
18 November 2015

 

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