REG - South32 Limited - Worsley Alumina Approvals Update

South32Announcement

22/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240722:nRSV2435Xa&default-theme=true

RNS Number : 2435X  South32 Limited  22 July 2024

 

 

22 July 2024

South32 Limited

(Incorporated in Australia under the Corporations Act 2001 (Cth))

(ACN 093 732 597)

ASX / LSE / JSE Share Code: S32; ADR: SOUHY

ISIN: AU000000S320

south32.net

 

 

WORSLEY ALUMINA APPROVALS UPDATE

South32 Limited (ASX, LSE, JSE: S32, ADR: SOUHY) (South32) provides the
following update in relation to regulatory approvals for new mining areas at
Worsley Alumina.

In 2019, Worsley Alumina commenced the environmental approval process with the
Western Australian Environmental Protection Authority (WA EPA) for the Worsley
Mine Development Project to enable access to bauxite to sustain production.
Over the past five years, Worsley Alumina has undertaken extensive
environmental assessment and consultation with a range of stakeholders on its
proposal for the Project.

On 8 July 2024, the WA EPA published its recommendation that the proposal may
be implemented, subject to conditions. If imposed in their current form,
several conditions recommended by the WA EPA create significant operating
challenges for Worsley Alumina and impact its long-term viability. In Worsley
Alumina's view, several of the recommended conditions go beyond reasonable
measures for managing environmental risks of the proposal based on scientific
assessment and decades of operating experience.

Following what has been a long and protracted process, Worsley Alumina intends
to lodge an appeal in relation to the WA EPA assessment report, and to work
collaboratively with the Western Australian Government to enable Worsley
Alumina to continue to meet the State's robust environmental standards and to
continue the significant contribution Worsley Alumina has made to the South
West for the past 40 years. Worsley Alumina aims to secure environmental
approvals for the proposal by the end of CY2024.

We have undertaken a carrying value assessment of Worsley Alumina having
regard to the increased uncertainty created by the WA EPA's recommended
conditions and associated challenging operating conditions. As a result, we
will recognise an impairment expense of ~US$554M (~US$389M post-tax) for
Worsley Alumina with our FY24 financial results. The impairment reduces
Worsley Alumina's carrying value to ~US$2,027M, with the impairment expense to
be excluded from FY24 Underlying earnings, in accordance with our accounting
policies.

 

About Worsley Alumina

Worsley Alumina is an integrated bauxite mining and alumina refining operation
in the South West of Western Australia, and is recognised as one of the
largest alumina refineries in the world.

It is one of the region's largest private sector employers, supporting
thousands of jobs and making a significant contribution to the local economy
through salaries, local suppliers and community investment.

Worsley Alumina's bauxite is mined near the town of Boddington, 130 kilometres
south-east of Perth. It is then transported by overland conveyor to the
alumina refinery near Collie and turned into alumina powder, before being
exported to smelters around the world.

The bauxite mined and alumina produced at Worsley Alumina are vital components
in the production of aluminium, a commodity critical to a low-carbon future.

 

About us

South32 is a globally diversified mining and metals company. Our purpose is to
make a difference by developing natural resources, improving people's lives
now and for generations to come. We are trusted by our owners and partners to
realise the potential of their resources. We produce commodities including
bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical
coal and manganese from our operations in Australia, Southern Africa and South
America. We also have a portfolio of high-quality development projects and
options, and exploration prospects, consistent with our strategy to reshape
our portfolio toward commodities that are critical for a low-carbon future.

 Investor Relations
 Ben Baker

T          +61 8 9324 9363

M        +61 403 763 086

E          Ben.Baker@south32.net (mailto:Ben.Baker@south32.net)
 Media Relations
 Jamie Macdonald                                                            Miles Godfrey

T          +61 8 9324 9000                                                T          +61 8 9324 9000

M        +61 408 925 140                                                  M        +61 415 325 906

E          Jamie.Macdonald@south32.net
E          Miles.Godfrey@south32.net
                                                                            (file://///auper-p-vfs04/South32/Investor%20Relations/12.%20ASX%20Releases/FY23/Project%20Matrix/Current%20draft/Miles.Godfrey@south32.net)

Further information on South32 can be found at www.south32.net
(http://www.south32.net) .

Approved for release to the market by Graham Kerr, Chief Executive Officer

JSE Sponsor: The Standard Bank of South Africa Limited

22 July 2024

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDZZGZNFMMGDZZ