South32 are a leading global resources 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. Across the South32 global operations, the company is committed to working in ways that are true to the South32 values of Care, Togetherness, Trust and Excellence.
When South32 follows these core values, they continue to build on their success today and for tomorrow.
South32 is a resources company built around a single idea:in a rapidly-changing world, we have an opportunity to make a difference, from the ground up.
THE ROOTS OF SOUTH32 Right here in the Southern Hemisphere, with a head office in Perth, regional hubs in Perth and Johannesburg, and marketing office in Singapore. Our shares trade on the ASX, JSE and LSE under the listing code of S32, and our operations span the globe, with assets in Australia, Southern Africa and South America.
We are a globally diversified metals and mining company with a portfolio of high quality, well maintained, cash generative assets producing bauxite, alumina, aluminium, thermal and metallurgical coal, manganese, nickel, silver, lead and zinc.
We are the world’s largest producer of manganese ore, and own the world’s largest silver mine. We run exceptionally high-quality alumina refinery and two modern, cost-competitive aluminium smelters, as well one of the world’s leading ferronickel operations.
The creation of value can make a real difference to the communities in which we operate, and we are committed to realising the potential of resources; human and mineral. We believe that, by meeting the needs of our employees, our host communities, and the governments who represent them, we enhance our licence to operate. South32 is a new kind of resources company, one that believes people working together can create a brighter future for all
OVERVIEW SOUTH32 AFRICA
The Africa Region is a significant contributor to the growth and performance of our global resources company, South32. With operations in South Africa and Mozambique, we have four assets, namely; Aluminium South Africa (ASA), Energy Coal South Africa, Mozal and Manganese South Africa.Within the region we provide employment and sub-contracting support to over 16,000 people. Our Manganese operations in Hotazel in the Northern Cape within South Africa are situated in an area with the world’s largest known deposits of manganese ore. Our ore is accessed from the Wessels underground mine and the Mamatwan opencast mine.
The Energy Coal operations of South32 are located in South Africa’s coal rich corridor, in the towns of eMalahleni and Middleburg. We are the third largest exporter of thermal coal in the country.
Our Aluminium operations are located in the South African province of Kwa-Zulu Natal and in Maputo, in a province by the same name. Our operation known as Hillside is the largest aluminium smelter in the Southern Hemisphere, followed by our Mozal operation in Mozambique.Our Aluminium business supplies part of the primary product to a local company that manufactures a variety of value-added aluminium-based products and materials for local consumption and export.
South32 is committed to supporting the developmental agendas of downstream beneficiation in the African countries in which it operates. More than 30 per cent of the ore produced at Hotazel is sent to Metalloys for beneficiation, where the manganese alloy is produced.
In South Africa we are fully committed to and compliant with the requirements stipulated in Broad-Based Black Economic Empowerment (B-BBEE) legislation.
Our Hotazel Manganese Mines (HMM) are 26 per cent owned by B-BBEE investors, 5 per cent of which is owned by a local Trust.
Energy Coal is 90 per cent owned by South32, 2 per cent is owned by employees through an Employee Share Ownership Plan (ESOP), while the remaining 8 per cent is owned by a B-BBEE consortium led by Pembani Holdings.
In a deal valued at more than R10 billion the Bayside Casthouse in Kwa-Zulu Natal was sold in 2014 to a B-BBEE consortium. ASSETS AND LOCATIONS
The Africa Region of South32 has four assets, namely:
Manganese
Aluminium
Energy Coal
Mozal
COMMODITY OVERVIEW
ALUMINIUM Aluminium SA (ASA) operates an aluminium smelter in South Africa known as Hillside in Richards Bay, Kwazulu-Natal. Hillside is one of the world’s most advanced and efficient aluminium smelters. It produces high quality primary aluminium and is the largest producer of standard aluminium ingots in the southern hemisphere. Approximately 85 per cent of Hillside’s aluminium ingot is exported while the remaining aluminium is sold locally, mostly to Hulamin, a local company, which produces a variety of products for export markets and the South African market.
ENERGY COAL The Energy Coal operations of South32 are located near the towns of eMalahleni (Witbank) and Middelburg in the coalfields of Mpumalanga in South Africa. This division consists of four primary coal mining operations namely Khutala Colliery, Klipspruit Colliery, Middelburg Colliery and Wolvekrans Colliery, as well as BECSA Coal Processing. Energy Coal and Anglo Thermal Coal operate the Phola Plant through a 50:50 Joint Venture. This South32 Asset is the third largest coal producer in the country and the second largest supplier to Eskom for power generation purposes.
MANGANESE The Manganese operations of South32 are situated at Hotazel in the Northern Cape, which has the world’s largest known deposits of manganese ore. The ore is accessed from the Wessels underground mine and the Mamatwan opencast mine.
ORE More than 70 per cent of the ore produced by South32 is sold directly to external customers, while the remainder is beneficiated at our Metalloys smelters located at Meyerton in Gauteng (South Africa). TRANSFORMATION South32 views transformation as a fundamental process that affects every aspect of our business, either directly or indirectly, by virtue of us operating in Africa. We see it as a strategic imperative and a business opportunity that allows us to make meaningful contribution to the economic growth of each country in which we operate, rather than a matter of merely meeting legislative requirements.
In the South African context we support the Government’s agenda of empowerment as enacted in the Broad-Based Black Economic Empowerment Act and the Mining Charter.
The South32 transformation goals have been set with the aim of ensuring that empowerment and sustainable growth in our region is enhanced through:
Facilitation of economic empowerment through broad-based ownership structures;
Ensuring equitable representation and the upskilling of our workforce at all levels;
Development of small and medium enterprises and creation of opportunities for growth;
Increasing our footprint through focused sustainable community development;
Improvement of housing and living conditions of our employees, and ensuring that our plan is aligned with our values and the Mining Charter requirements;
Promotion of the use of employees for core production areas and recruiting from within our local communities;