South32 Manganese Output Falls Sharply Amid Mine Disruptions

Australian mining giant South32 (OTC:SOUHY) reported a significant drop in third-quarter manganese ore production, falling nearly 30% below analyst expectations due to operational disruptions across key assets. The miner produced 476,000 wet metric tons (wmt) of manganese ore in the March quarter, a sharp decline from 1.2 million wmt recorded a year earlier. This figure also fell short of the 678,900 wmt forecast by Visible Alpha analysts.

The decline was attributed to planned maintenance activities and the temporary closure of two mines in South Africa. The company's South Africa Manganese operations delivered 476,000 wmt, slightly down from 530,000 wmt during the same period last year. Compounding the shortfall, South32’s Australia Manganese division reported zero output for the quarter after halting its primary concentrator. The pause came as stockpiles were built in anticipation of the wet season, effectively suspending production.

South32 is the world’s largest producer of manganese ore, a critical component in steel production. The downturn in output highlights the vulnerability of the global manganese supply chain to weather and maintenance-related disruptions, particularly when major producers experience operational pauses simultaneously.

Despite the setback, South32 continues to manage production in line with seasonal and operational challenges. Investors and analysts will be watching closely to see whether output normalizes in the coming quarters and how this might impact pricing in the global manganese market.

The miner’s performance this quarter underscores the importance of operational stability across diversified mining assets, especially in a market where demand for steelmaking inputs remains robust. With commodity markets on edge amid supply constraints, the company’s future guidance and operational recovery will remain a key focus for stakeholders.