(Reuters) - Australian mining group South32 Ltd on Thursday logged a near 100 percent spike in its second-quarter metallurgical coal output and raised its production guidance for a major mine in 2019.
Production of coking or metallurgical coal, which is a key steel-making ingredient, rose to about 1.6 million tonnes in the December quarter from 788,000 tonnes a year earlier. The figure was substantially higher than a Citi estimate of 804,000 tonnes.
The company raised its fiscal 2019 guidance for production from its Illawarra Coal Project by 7 percent to an expected 6.5 million tonnes. Illawarra accounts for most, if not all of South32’s coking coal output.
First quarter coking coal output by the company had tripled following strong performance at its mines.
The company, which is also the world’s largest manganese miner, clocked a small decline in production for the quarter with about 1.4 million wet metric tonnes of manganese ore produced.
The diversified miner’s aluminum production rose slightly to 247,000 tonnes in the quarter. Aluminum prices had slumped in late December after the United State’s decision to lift sanctions on Russian behemoth Rusal.
Separately, the company said Katie Tovich will succeed Brendan Harris as its chief financial officer, starting from May 1, 2019.
Reporting by Ambar Warrick and Rashmi Ashok in Bengaluru; Editing by Toby Chopra