Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Australian diversified miner South32 Ltd said on Thursday it would spend about $70 million to restart the Alumar aluminium smelter in Brazil with its joint venture partner Alcoa Corp.
The smelter, which has been on care and maintenance since 2015, is a part of South32’s Brazil Alumina operations, which also include a share in the country’s largest bauxite mine and a refinery.
South32 said its 40% share of Alumar will be entirely powered by renewable energy as it is restarted over 2022 and 2023.
“We see strong long-term market fundamentals for aluminium. By investing along our existing alumina-aluminium value chain, we are… meaningfully increasing our share of metal produced utilising green energy,” Chief Executive Officer Graham Kerr said in a statement.
First production from the smelter is expected in the June quarter. South32 anticipates output of 5,000 tonnes this year and 140,000 tonnes next year from its share of the operation.
(By Shashwat Awasthi; Editing by Shailesh Kuber)
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