South32 Eyes Copper, Zinc Growth as It Shuts Aluminum Smelter

t5ba0n2pv2zfec44)r7n47mh_media_dl_1.png London Metals ExchangeArticle content(Bloomberg) — South32 Ltd. plans to prioritize growth in metals such as copper and zinc over aluminum, where it has decided to shut a major African smelter. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Perth-based miner has no plans to replace volumes from the Mozal plant or expand its footprint in aluminum, Chief Executive Officer Graham Kerr said in a telephone interview. The company sees more “attraction and spending in zinc and copper over aluminum,” he said. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“We want to grow copper and zinc exposure to be more than our alumina and aluminum business,” Kerr said. “We’re not planning to spend more capital in aluminum outside current safe, reliable and small improvement opportunities.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentCopper prices have outpaced those for aluminum over recent years. The metal has been a sought-after element in recent mega-merger discussions among miners, because of its role in electrification, data centers and the energy transition. Article contentThe copper and zinc business is delivering returns of 45% to 70%, compared with 15% in aluminum, Kerr said. Article contentSouth32 said late last year it would put the Mozal smelter — one of Mozambique’s biggest employers — into care and maintenance in March, when the current electricity contract ends. Article content“There has been some inbound interest in Mozal, but our primary focus for now has been on site closure,” Kerr said.Article contentSouth32 on Thursday said net profit rose 29% from a year earlier in the six months through December, to $464 million. The company’s shares reversed earier gains to trade down 3% as of 4:16 p.m. in Sydney, paring their year-to-date gain to 27%. Article contentSince it was spun out of BHP Group, South32 has exited coal, sold non-core and complex assets, and focused on base and battery metals. Its core growth project is the Hermosa underground zinc-lead-copper mine in Arizona. Article contentSouth32 is also progressing exploration at the Ambler copper project in northwest Alaska, alongside partner Trilogy Metals Inc. The Trump administration acquired a 10% interest in Trilogy last year, which is also backed by billionaire John Paulson. Article contentArticle contentArticle contentTrending BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance Garry Marr: Say no to a free lunch for your RRSP today, expect fewer menu options at retirement Retirement Turning self-employed Canadians into employers could add $24 billion to GDP, new report says Entrepreneur Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. BlackBerry cofounder Michael Lazaridis invests in Vancouver-based AI startup Innovation Trump privately weighs quitting CUSMA trade deal he negotiated Economy Subscriber only. These are the TFSA and RRSP tricks that can make you a fortune Subscriber only Personal Finance Garry Marr: Say no to a free lunch for your RRSP today, expect fewer menu options at retirement Retirement Turning self-employed Canadians into employers could add $24 billion to GDP, new report says Entrepreneur