South32 alumina output in Brazil drops

South32, the spin-off of mining giant BHP, reported that saleable alumina production from its Brazil subsidiary dropped 5% to 944,000t in the nine months ended March 2019.

In an earnings release, the company said that boiler performance and power outages impacted production and the company's ability to realize the full benefits of the de-bottlenecking phase one project.

"We now expect FY19 production of 1,285kt (versus prior guidance of 1,355kt) with the addition of package boilers in the June 2019 quarter to improve the reliability of steam generation. Production guidance of 1,370kt for FY20 remains unchanged," South32 said.

Alumina sales from Brazil in the period decreased 10% to 866,000t, the company added.

Payable nickel output from the company's Cerro Matoso mine in Colombia fell 6% to 30.5kt in the period following a planned increase in the contribution of lower grade stockpiled ore feed.

FY19 production guidance at Cerro Matoso remains unchanged at 40.5kt, following the completion of a planned furnace outage during the March 2019 quarter, the company said.

South32's Latin American assets include a 14.8% interest in the Mineração Rio do Norte bauxite mine as well as a 36% interest in the Alumar alumina refinery and a 40% interest in the Alumar aluminum smelter, all in Brazil.

The company also holds a 99.9% interest in Cerro Matoso, a nickel mine and ferronickel smelter in northern Colombia.