South32 Reports Lower Manganese Output Due to Operations Review

Bloomberg reported that South32 Ltd.’s (ASX:S32,LSE:S32) manganese output fell during Q2 by about a third. The drop came on the back of the company’s decision to halt mines and review how best to operate in today’s tough markets.
As quoted in the market news:

The strategic review of its South African manganese joint venture with Anglo American Plc to set new production targets is nearing completion, Perth-based South32 said Thursday in a statement. The company, which holds a 60 percent stake in the unit, said output from the Wessels and Mamatwan mines was suspended in November.

The collapse in prices of metals to energy on supply gluts and faltering demand in China, the biggest consumer, has pressed producers including Glencore Plc, Anglo American and Freeport- McMoRan Inc. to trim output and sell assets. The Bloomberg Commodity Index, a measure of returns from 22 raw materials, this week touched a 25-year low.

“In order to protect our strong financial position in the currently challenging environment we have already cut or suspended production,” at businesses including the South Africa manganese unit, aluminum operations in Brazil and South Africa and manganese alloy operations in Tasmania, Chief Executive Officer Graham Kerr said in the statement. “Further decisive action will be taken as we seek to maximize short-term cash flow while preserving longer-term value.”

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