South32 halts operations at Groote Eylandt

South32 withdrew its forecast for Australian manganese output after it was forced to temporarily suspend operations at its Groote Eylandt Mining Co (GEMCO) unit due to Tropical Cyclone Megan, reported Reuters.

The diversified miner initially forecasted a production of 3.4 million wet metric tons (amt) of manganese in fiscal 2024, slightly lower than the 3.5 million amt output in fiscal 2023.

The news agency reported significant structural damage to the wharf and port infrastructure at GEMCO with alternative shipping arrangements being evaluated. Additionally, initial assement shows flooding in the mining pits.

“Further assessment of the full impact of the damage is ongoing,” South32 said, adding that it will release a new manganese production forecast with its March quarter production results.

Located on the island of Groote Eylandt, in the Gulf of Carpentaria in Australia’s Northern Territory, GEMCO is an open-cut, strip-mining operation that produces high grade manganese ore. South32 owns a 60% stake in GEMCO, with the remaining 40% held by Anglo American.

Source: Reuters

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