South32, an Australian mining and metals company, announced that it will record pre-tax impairment expenses of approximately $554 million for Worsley Alumina and $264 million for Cerro Matoso in its fiscal year 2024 financial results.
The company’s fourth-quarter production figures showed stability in alumina production, with 1.249 million tonnes, unchanged from the previous year. However, aluminium production slightly decreased to 285 thousand tonnes from 286 thousand tonnes in the prior year. Metallurgical coal production also saw a decline, dropping to 1.274 million tonnes from 1.504 million tonnes year-on-year.
In light of these figures, South32 has revised its fiscal year 2025 production guidance downward: alumina by 5%, Sierra Gorda payable copper equivalent by 7%, and Cannington payable zinc equivalent by 9%.
In a separate press release, South32 provided updates on regulatory approvals for new mining areas at Worsley Alumina. The environmental approval process for the Worsley Mine Development Project, initiated in 2019, recently saw the Western Australian Environmental Protection Authority (WA EPA) recommending the project’s implementation with several conditions on July 8, 2024.
South32 expressed concerns that some of these conditions pose significant operational challenges and could threaten the long-term viability of Worsley Alumina. The company plans to appeal the decision, aiming to secure environmental approvals by the end of 2024. Due to the increased uncertainty from the WA EPA’s recommended conditions, South32 has reassessed the carrying value of Worsley Alumina, leading to the recognition of a $554 million impairment expense in its fiscal year 2024 financial results. 
