South32 Postpones Restart of 3 out of 4 Furnaces at Metalloys Manganese Operation

South32 Limited (ASX:S32,LSE:S32) announced that Samancor Manganese Joint venture has decided to delay the restart of three of the four high-carbon ferromanganese (HCFeMn) furnaces at its Metalloys manganese alloy operation in South Africa.

As quoted in the press release,

The decision follows a decline in HCFeMn alloy prices of approximately 20 per cent since the start of the 2015 financial year and is aligned with South32’s commitment to maximise per share financial performance, rather than volume. No permanent employees will be retrenched as a result of this temporary suspension.

Following this decision, the joint venture is engaging with Transnet to secure access to the necessary rail and port capacity required to export additional manganese ore from its South African mining operations; however, export volumes will remain dependent on market conditions.

South32 also confirms that a review of the fair value of its interest in the Samancor Manganese joint venture is currently underway. The process is expected to have implications for the fair value adjustment2 that is required pursuant to the conclusion of the Amended and Restated Umbrella Agreement governing the joint venture

Click here for the full South32 Limited (LSE:S32) press release