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South32 halts manganese play as Cyclone Megan smashes up a port

ASX News, Materials
ASX:1
18 March 2024 10:39 (AEDT)

A cyclone as seen from space. Source: Adobe Stock

South32 Limited (ASX:S32) has reported a temporary shutdown of its Groote Eyelandt manganese operations as Cyclone Megan wreaks havoc on-site.

“Severe weather conditions continue to impact the Eylandt and we are closely monitoring the situation,” the company wrote on Monday.

South32 reports that a wharf on-site crucial for operations has been structurally damaged by the weather system.

The company has also flagged that guidance for the year could be hurt. The mine is an open-cut strip operation.

South32 will release a further update on sales volumes “when access to the port and other infrastructure is restored.”

South32 owns 60% of a company called GEMCO that operates the manganese side of things with the other 40% held by Anglo American.

The operation is slated for a 2030 shutdown.

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