South32 has lifted its forecast for production out of Cannington as the North-West Queensland mine transitions to truck haulage operations.

Cannington’s output, reported as payable zinc equivalent, increased by 9 per cent in the last six months of 2021 to 152,500 tonnes.

This was achieved as higher grades and continued strong underground performance lifted metal
output, South32 said in its half-yearly financial reporting.

Reflecting the strong start to the year, production guidance for the coming fiscal year has been revised higher by 5 per cent (silver 12,283koz, lead 117.9kt and zinc 66.7kt) for 292,200 tonnes of payable zinc
equivalent production.

The operation is on track to transition from using hoist infrastructure to 100 per cent truck haulage from the fourth quarter of this financial year.

This is expected to drive a further 7 per cent increase in production in the next financial year.

Cannington’s strong performance comes against a backdrop of positive financial news across South32 operations – which cover commodities including bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc in Australia, Southern Africa and South America.

South32 chief executive officer Graham Kerr said the group achieved a record operating margin of 44 per cent in the six months to December 31.

There was also a significant improvement in underlying earnings to US$1 billion in the half, following a broad recovery in commodity prices.

“A number of our operations delivered strong production results during the half,” Mr Kerr said.

“We achieved record quarterly production at Brazil Alumina and South Africa Manganese during the period, while Worsley Alumina continued to operate above nameplate capacity.

“Production guidance at Cannington has been revised higher by five per cent as the operation prepares to transition to 100 percent truck haulage in the June 2022 quarter, which is expected to bring forward access to higher grade material.

“This performance, together with our strong financial position is enabling us to invest in our business, grow base metals production and substantially increase our returns to shareholders.”