South32 shareholders approve R92bn Alcoa deal

South32 has approved the sale of the group’s aluminium value chain assets to Alcoa Corporation in a deal worth $5.6 billion (approximately R92 billion).

The transaction was approved on October 15 and is expected to be completed in the half year ending June 2027, subject to outstanding conditions and regulatory approvals.

“The transaction remains on track for completion in the June 2027 half year, subject to relevant regulatory approvals, and will reposition South32 as a leading upstream base metals focused company with high-margin assets and transformational growth,” said Matt Daley, South32 chief executive.

He said in the September 2026 quarterly report, the company maintained its production guidance across all operations, while reporting an increase in manganese output in South Africa and a decline in sales during the quarter.

Manganese production up, sales drop

The mining and metals company holds a 54.6% stake in its South African manganese operations, where production increased 11% quarter-on-quarter to 588 000 wet metric tonnes. The company attributed the increase to improved underground productivity at its Wessels operation.

“Manganese had a strong start to the year, with production increasing by 14% as Australia Manganese benefitted from improved operating conditions following the wet season and South Africa manganese lifted underground productivity at Wessels,” said Daley.

However, manganese sales dropped 22% to 460 000 wet metric tonnes as the company reduced trucked volumes in response to market conditions and moved a shipment in the December 2026 quarter.

Hillside Aluminium production dips

The company’s Hillside Aluminium smelter in Richards Bay produced 177 000 tonnes of aluminium in the September quarter, down 1% from the previous quarter.

The company said Hillside continued testing its maximum technical capacity despite the impact of loadshedding. Its full-year production guidance remains unchanged at 720 000 tonnes.

Group cash position strengthens

At group level, net cash increased by $14 million to $297 million during the September quarter. The company received $153 million distribution from its Sierra Gorda investment in Chile, while continuing to invest in its growth projects.

It spent $197 million on the Hermosa zinc-lead-silver project in the US during the quarter, advancing underground and surface infrastructure construction at the Taylor project.

South32 paid an ordinary dividend of $242 million or 5.4 cents per share, related to the June 2026 half-year.

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