News: S32 UPDATE 1-South32's quarterly met coal output jumps 24% on Appin mine boost

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Jan 23 (Reuters) - Australian diversified miner South32 Ltd (S32) on Monday reported a 24.4% rise in its second-quarter metallurgical coal output, helped by improved volumes and labour productivity at its Appin mine following worker strikes and an extended longwall move.

The miner's December quarter metallurgical coal output also rose sequentially as it finalised a new enterprise agreement at its Appin mine with a term of four years to 2026 to deal with continued workers strike over pay hikes.

For the second quarter, South32 posted metallurgical coal production of 1.5 million tonnes (Mt), up from 1.2 Mt produced a year earlier and in-line with a consensus estimate of 1.5 mt, according to Goldman Sachs.

The Perth-based miner added that despite inflationary pressures, it expects to report operating unit costs for the first half of fiscal 2023 in-line or below its current forecast at the majority of its operations.

South32, however, trimmed its full year production forecast at Cannington mine by 11% due to lower mill throughput and labour availability. It also cut the output forecast for Brazil Aluminium by 25% due to a slower ramp-up to nameplate capacity.