22 July 2024
South32
Limited
(Incorporated in Australia under the Corporations Act
2001 (Cth))
(ACN 093
732 597)
ASX / LSE
/ JSE Share Code: S32; ADR: SOUHY
ISIN:
AU000000S320
south32.net
WORSLEY ALUMINA APPROVALS
UPDATE
South32 Limited (ASX, LSE, JSE: S32, ADR: SOUHY)
(South32) provides the following
update in relation to regulatory approvals for new mining areas at
Worsley Alumina.
In 2019, Worsley Alumina commenced
the environmental approval process with the Western Australian
Environmental Protection Authority (WA EPA) for the Worsley Mine
Development Project to enable access to bauxite to sustain
production. Over the past five years, Worsley Alumina has
undertaken extensive environmental assessment and consultation with
a range of stakeholders on its proposal for the Project.
On 8 July 2024, the WA EPA published
its recommendation that the proposal may be implemented, subject to
conditions. If imposed in their current form, several conditions
recommended by the WA EPA create significant operating challenges
for Worsley Alumina and impact its long-term viability. In Worsley
Alumina's view, several of the recommended
conditions go beyond reasonable measures for managing environmental
risks of the proposal based on scientific assessment and decades of
operating experience.
Following what has been a long and
protracted process, Worsley Alumina intends to lodge an appeal in
relation to the WA EPA assessment report, and to work
collaboratively with the Western Australian Government
to enable Worsley Alumina to continue to meet the
State's robust environmental standards and to continue the
significant contribution Worsley Alumina has made to the South West
for the past 40 years. Worsley Alumina aims to secure
environmental approvals for the proposal by the
end of CY2024.
We have undertaken a carrying value
assessment of Worsley Alumina having regard to the increased
uncertainty created by the WA EPA's recommended conditions and
associated challenging operating conditions. As a result, we will
recognise an impairment expense of ~US$554M (~US$389M post-tax) for
Worsley Alumina with our FY24 financial results. The
impairment reduces Worsley Alumina's carrying value to ~US$2,027M,
with the impairment expense to be excluded from FY24 Underlying
earnings, in accordance with our accounting policies.
About Worsley Alumina
Worsley Alumina is an integrated
bauxite mining and alumina refining operation in the South West of
Western Australia, and is recognised as one of the largest
alumina refineries in the world.
It is one of the region's largest
private sector employers, supporting thousands of jobs and making a
significant contribution to the local economy through salaries,
local suppliers and community investment.
Worsley Alumina's bauxite is mined
near the town of Boddington, 130 kilometres south-east of Perth. It
is then transported by overland conveyor to the alumina refinery
near Collie and turned into alumina powder, before being exported
to smelters around the world.
The bauxite mined and alumina
produced at Worsley Alumina are vital components in the production
of aluminium, a commodity critical to a low-carbon
future.
About us
South32 is a globally diversified
mining and metals company. Our purpose is to make a difference by
developing natural resources, improving people's lives now and for
generations to come. We are trusted by our owners and partners to
realise the potential of their resources. We produce commodities
including bauxite, alumina, aluminium, copper, silver, lead, zinc,
nickel, metallurgical coal and manganese from our operations in
Australia, Southern Africa and South America. We also have a
portfolio of high-quality development projects and options, and
exploration prospects, consistent with our strategy to reshape our
portfolio toward commodities that are critical for a low-carbon
future.
Investor Relations
|
|
Ben
Baker
T
+61 8 9324 9363
M
+61 403 763 086
E
Ben.Baker@south32.net
|
|
Media Relations
|
|
Jamie Macdonald
T
+61 8 9324 9000
M +61 408 925
140
E
Jamie.Macdonald@south32.net
|
Miles Godfrey
T
+61 8 9324 9000 M +61 415 325 906
E
Miles.Godfrey@south32.net
|
Further information on South32 can
be found at www.south32.net.
Approved
for release to the market by Graham Kerr, Chief Executive
Officer
JSE Sponsor: The Standard Bank of South Africa Limited
22 July 2024