South32 shares take a hit after withdrawing Australian manganese guidance following Cyclone Megan damage

Shares in South32 are down in early trade after the WA-based diversified miner withdrew its Australian manganese output guidance following significant damage to its Groote Eylandt mine in the Northern Territory. Operations at the Groote Eylandt manganese mine, located on a namesake island 630 kilometres east of Darwin, remain temporarily suspended as the company assesses the impacts of Tropical Cyclone Megan, South32 said on Wednesday. The damage occurred after the bulk carrier MV Anikitos struck and damaged a loading wharf in the rough conditions. The news of the guidance withdrawal sent shares down 4.2 per cent to $2.99 at the close of trade. “As weather conditions have eased on the Eylandt, access to key infrastructure has been restored to enable an initial assessment of impact,” South32 said. “Initial assessments have identified flooding in the mining pits, as well as significant damage to a critical haul road bridge that connects the northern pits of the Western Leases mining area and the processing plant. “Significant structural damage to the wharf and port infrastructure has now also been confirmed.” Alternative shipping arrangements are also being evaluated and South32 will provide further updates in the March quarterly report. Almost 600mm of rain fell at Groote Eylandt over the weekend as the severe weather system moved over remote Northern Territory communities.