[Ferro-Alloys.com] Australia Manganese consists of Groote Eylandt Mining Company Pty Ltd (GEMCO) in the NorthernTerritory. South32 holds a 60 per cent share in GEMCO and Anglo American Plc holds the remaining 40 per cent.GEMCO is an open-cut strip mining operation, producing highgrade

manganese ore and is located in close proximity to Asian export markets. It is one of the largest manganese ore producers in the world. In FY23 we approved the Eastern Lease South life extension project, which is expected to extend the mine life at GEMCO, with first ore expected in FY25.

Location: Northern Territory, Australia

South32 share: 60 per cent

Volumes

Australia Manganese saleable ore production increased by five per cent (or 182kwmt) to a record 3,545kwmt in FY23, as improved yields supported higher primary concentrator output, and our low-cost PC02 circuit continued to operate above its design capacity.

Operating costs

Operating unit costs were largely unchanged at US$1.88/dmtu in FY23, as the operation delivered strong production volumes and benefitted from a weaker Australian dollar.

Financial performance

Underlying EBIT decreased by 34 per cent (or US$136 million), to US$266 million in FY23, as the benefit of lower freight rates (+US$36 million) and a weaker Australian dollar (+US$21 million),

was more than offset by a 13 per cent decline in average realized manganese ore prices (-US$128 million), higher diesel prices (-US$14 million) and contractor costs (-US$12 million). Sales volumes declined (-US$32 million) due to in-land logistics constraints. We have optimised our road haulage and implemented alternative shipping solutions to improve our logistics chain.

Capital expenditure

Safe and reliable capital expenditure decreased by US$15 million to US$41 million in FY23 as we invested in access infrastructure. Improvement and life extension capital expenditure increased by US$11 million to US$17 million in FY23 as we completed the feasibility study for the Eastern Lease South life extension project.

Social investment

We invested US$0.8 million in communities around Australia Manganese in FY23, with a focus on education and leadership, economic development, and health and wellbeing programs for Aboriginal and Torres Strait Islander Peoples.

SOUTH AFRICA MANGANESE MINE

South Africa Manganese consists of two manganese mines and the Metalloys manganese alloy smelter which was placed on care and maintenance in FY20.

Hotazel Manganese Mines (HMM) is located in the Kalahari Basin. South32 holds a 60 per cent interest in Samancor Holdings (Pty) Ltd (Samancor Holdings) and Anglo American Plc holds the remaining 40 per cent. Samancor Holdings indirectly owns 74 per cent of HMM, which gives South32 its ownership interest of 44.4 per cent. The remaining 26 per cent of HMM is owned by Broad-Based Black Economic Empowerment entities.

South32 holds an effective 60 per cent interest in Samancor Manganese (Pty) Ltd (Metalloys manganese alloy smelter). The site remains on care and maintenance as we assess future options for the smelter.

We are studying options to unlock logistics capacity in our South Africa manganese business and expand our high-grade Wessels mine.

Location: Northern Cape and Gauteng, South Africa

South32 share: Ore - 44.4 per cent, Alloy - 60 per cent

Volumes

South Africa Manganese saleable production increased by two per cent (or 39kwmt) to a record 2,108kwmt in FY23, with increased volumes of premium material from our Mamatwan mine.

Operating costs

Operating unit costs decreased by three per cent to US$2.64/dmtu in FY23, as the benefit of a weaker South African rand more than offset lower sales volumes due to a temporary reduction in third-party rail and port availability.

Financial performance

Ore Underlying EBIT decreased by 35 per cent (or US$28 million), to US$51 million in FY23, as the benefit of a weaker South African rand (+US$32 million) and lower freight rates (+US$25 million), was more than offset by a nine per cent decline in average realized manganese ore prices (-US$53 million) and lower sales volumes (-US$22 million) due to the timing of shipments. The Metalloys manganese alloy smelter remains on care and maintenance.

Capital expenditure

Safe and reliable capital expenditure was US$16 million in FY23 as we invested in mining equipment. Improvement and life extension capital expenditure was US$9 million in FY23 as we advanced work to access new mining areas at our high-grade underground Wessels mine.

Social investment

We invested US$3.2 million in communities around South Africa Manganese in FY23, with a focus on education, economic participation, natural resources resilience, health and wellbeing

• [Editor:tianyawei]