The Hillside aluminium smelter in Richards Bay. Photo: Supplied
South African manganese and aluminium producer, South32 - which also mines for these minerals and other metals across the world - on Thursday reported an 838% profit surge for the interim period to December 2024, with CEO Graham Kerr describing US tariffs as a bargaining tool.
Earnings for South32 surged to $375 million, driven by higher commodity prices as well as cost management. Revenues for the interim period surged 25% to $3.12 billion, while firmer production for aluminium and copper drove up underlying earnings before interest, tax, depreciation, and amortisation by 44% to about $1bn.
"We achieved strong operating results across our portfolio in H1 FY25, including increasing aluminium production by 5% and copper production by 16%,” said Kerr.
Global miners have been pondering over uncertainty emanating from looming trade wars between the US and other countries after President Donald Trump started to impose import tariffs on commodities. Trump has recently imposed a 25% tariff on imports of aluminium and steel, with Kerr seeing the new round of tariffs by the US as bargaining chips.
"(For) me, it's (tariffs are) a negotiation rather than a long-term policy. The challenge with all the tariffs is how long does it last,” Kerr said during a briefing after the company released its half-year financials.
South32 produces manganese and aluminium in South Africa. In the half-year period under review, South32’s capital expenditure for its aluminium operations in SA decreased by $6m to $19m, while it invested $16m in safe and reliable capex for its manganese operations in the country.
The company announced an interim ordinary dividend of $154m after it continued a tight capital management programme, with $171m remaining to be returned to shareholders.
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