Major manganese exporter takes a hard hit

South32, the world’s largest manganese producer, expects to book an asset write-down valued at the equivalent of R27.2 billion, slash costs and trim production after the collapse in commodity prices, according to Business Report.
The roots of South32 are in the Southern Hemisphere, with its head office in Perth, Australia, and regional hubs in Perth and Johannesburg.
And its SA arm, which is a major manganese and coal exporter, will also take a serious knock.
Bloomberg reported that the producer expected to take impairments against coal operations and manganese assets in SA, South32 said in the statement.
About 620 jobs will be cut at its manganese joint venture with Anglo American in SA. And, while manganese output will resume following a suspension and strategic review, this will be at a “substantially reduced rate”, taking about 900 000 tonnes out of the market, it added.

Please follow and like us: