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Being a premier base metals focused business with strong growth potential is the vision for South32 of new CEO Matt Daley.

"We've got around 55% production growth over the next handful of years in the commodities that we particularly feel are strongly structurally positioned for really strong years ahead, those being zinc, lead, silver, and copper," said an upbeat Daley who spoke to Mining Weekly after taking over the reins of South32 from outgoing Graham Kerr on July 1.

Daley had a hyperactive first day in office amid the company's major aluminium asset disposal announcement as well a copper growth announcement.

"Exciting time today and pretty honoured to step into the role of CEO," Daley commented amid Alcoa agreeing to buy South32's aluminium value chain assets for up to $5.6-billion and South32 highlighting its participation in the Sierra Gorda copper growth project in northern Chile.

"The strategy for us is really clear, and we've been articulating it today around running what is going to be a premier base metals focused business with really strong growth potential," Daley reiterated.

The ASX- , LSE- and JSE-listed South32's targeted 55% base metals uplift involves optimising existing assets and pursuing high-margin developments in tier-one jurisdictions.

"We've got a portfolio that spans Australia, South America, North America, with exploration everywhere from Chile to Southern Africa and back to Australia.

"With the Alcoa transaction, we crystallise one of those future cash flows from the aluminum value chain right here and now and pick up some of the synergies that exist in the southwest between the neighbouring Alcoa and South32 refineries and position us really well to invest in those growth base metals projects.

"My big focus is around strategic planning and operational excellence, and that goes hand in hand with safety performance for me as well. So, excited to step into the role, and I think some great days ahead for the company."

Questioned on manganese, Daley clarified that manganese is not an area of growth for South32.

What is positive for manganese is that South Africa's Wessels and Mamatwan manganese mines are performing to plan this year but higher diesel prices are impacting movement of material by road. "We're certainly working through some of those challenges and we've had quite a good year on rail again," said Daley, who regularly visited South Africa when working for Anglo American. "I was there almost every month and deeply love the place and the people."

Exceptionally high rainfalls and cyclones have dealt a significant blow to South32's manganese operation in Australia's Northern Territory.

"The site's really focused on managing water at the moment, which has had an impact on production, and we reguided the market at the end of Q3 around that reduction as a result of the water."

On capital investment prospects for manganese, Daley said: "Manganese is not an area of growth for South 32 so we're really investing growth capex into our zinc and copper businesses, so that's kind of the focus, but for us running the manganese business on plan is really important, as well as ensuring it's safe and stable."

The combined manganese output from South32's South African and Australian operations was 1.09 million-tons in the March quarter, up from 476 000 t a year earlier.

South32's South African manganese mines are found in the manganese rich Kalahari Basin, in the Northern Cape, which is home to 80 %of the world's manganese orebody.

Its two mines are part of the Hotazel Manganese Mines consortium, in which it holds a 44.4 % interest.

The Wessels mine has vertical and incline shafts and uses the mechanised bord and pillar mining method, while Mamatwan deploys the terrace mining ...

Mining Weekly Editor Martin Creamer discusses South32’s conditional agreement to sell Hillside Aluminium to Alcoa; Sibanye-Stillwater calling for new longer-term platinum group metal applications; and DRDGOLD’s R8-billion internally funded capital programme.

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TSX-listed Imperial Metals has confirmed it will receive $500-million from the government of Canada to advance the Red Chris mine block cave transition, under the Canada-British Columbia Cooperative Prospectivity Agreement.

As the Red Chris joint venture advances through the internal approval process toward a final investment decision, this commitment strengthens the business case for the development of its proposed block cave copper/gold operation.

"Our joint venture partner, Newmont Corporation, is in the process of completing a definitive feasibility study for the project. The Red Chris block cave is expected to create more than 1 800 jobs during construction and sustain a total workforce of 1 500 comprising peak-season operational roles," Imperial explains.

The project is expected to extend the life of the current Red Chris mine by about 14 years and sets the foundation for decades of potential additional mining.

Imperial currently holds 30% of the Red Chris mine, while Newmont holds the balance.

"It represents a significant opportunity to create long-term value for Imperial's shareholders, strengthen critical mineral supply chains, and deliver long-term benefits for local communities, Indigenous partners, British Columbia and Canada," Imperial concludes.

Newmont in June secured crucial regulatory approvals that pave the way for a transition from openpit mining to a block cave operation.

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

This asset adds scale to our smelting portfolio in a way that is expected to be cash flow accretive immediately, Alcoa Corporation President and CEO William (Bill) F Oplinger said of South Africa's Hillside Aluminium smelting business during a conference call following the NYSE-listed company's announcement of the aluminium-linked assets of the Johannesburg Stock Exchange-listed South32.

"We think we're acquiring fantastic long-term assets at a really reasonable price," Oplinger said during question time in reply to Citi Investment Research analyst Alex Hacking.

In addition to Hillside and the idled Bayside smelter property in South Africa's KwaZulu-Natal province, Alcoa will acquire South32's interests in the Boddington bauxite mine and the Worsley alumina refinery in Western Australia; and the Mineração Rio do Norte bauxite mine and the Alumar alumina refinery and aluminium smelter in Brazil.

In 2025, Hillside generated about $2-billion of revenue and $200-million of earnings before tax depreciation and amortisation, and in the current pricing environment is delivering strong cash generation, Oplinger added during the call covered by Mining Weekly.

"Hillside does introduce a new geography for Alcoa, but from a technical standpoint, it uses the same AP 30 smelting technology that we've operated for decades at two of our smelters," Oplinger pointed out.

Through Hillside, Alcoa is adding "meaningful volume and cash flow generation" and expanding its Africa footprint.

The smelter's production has been stable and predictable over the past five years, which the Pittsburgh-based Alcoa views as an important indicator of operational reliability and downside resilience.

In response to Hacking and also to Independent Research analyst John Tomaso regarding Hillside's electricity contract and its duration, Oplinger expressed strong positivity.

"The Hillside power contract runs through to 2031 so it's got a strong power contract today. We're confident that we'll be able to repower the Hillside smelter very effectively, and clearly, we'll start working on that towards the end of the decade."

In January, Mining Weekly reported that studies being undertaken on Hillside's future power source beyond 2031 have been taking place amid awareness of the different energy levers that can potentially be pulled.

The current power agreement is providing useful time to scrutinise power options during a period when various studies encompass the changing nature of the South African electricity transmission grid as well as the prospect of more renewables coming online.

As the Southern Hemisphere's largest aluminium smelter and the supplier of a significant percentage of primary aluminium for South Africa's value-adding secondary aluminium product producers, Hillside draws 1 140 MW virtually every minute of the day, every day of the week, every week of the year.

Close to a third of Hillside's aluminium, which is produced by 3 650 direct and indirect employees, is sent downstream to businesses that support a further 27 000-plus indirect employment opportunities.

Regarding collaboration with South Africa's State-owned power utility Eskom on the post-2031 energy arrangement, a number of different levers are available in an area that also has wind, sun and sea energy potential amid the 'greening' of South Africa's aluminium having considerable potential price benefit.

Hillside contributes nearly R10-billion to South Africa's GDP and a public–private effort could ensure that the aluminium produced benefits from the green price premium being paid for aluminium that is not carbon heavy.

Alcoa has entered into a definitive agreement to acquire South32 aluminium-linked assets for an upfront consideration of $4.1-billion. The transact...

South Africa-headquartered Harmony Gold Mining Company expects copper to account for 40% of its production within the next decade as the company builds a diversified portfolio designed to capitalise on growing demand for the red metal.