21 Jul - 3 min read

Illawarra Metallurgical Coal Impairment

Illawarra Metallurgical Coal Impairment

South32 Limited
(Incorporated in Australia under the Corporations Act 2001 (Cth))
(ACN 093 732 597)
ASX / LSE / JSE Share Code: S32 ADR: SOUHY
ISIN: AU000000S320

 21 July 2021


 South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (South32) has undertaken a review as of 30 June 2021 of the carrying values of its
 assets in accordance with the Group’s accounting policies and the accounting standards. As a result we will recognise a pre-tax
 impairment         charge          for        Illawarra       Metallurgical         Coal       (IMC)         of         US$728M
 (post-tax ~US$510M) with our FY21 financial results. This charge reflects the increased approval uncertainty created by the NSW
 Independent Planning Commission’s (IPC) decision to refuse our application for the Dendrobium Next Domain life extension project
 (DND project) and the resultant potential impact on the economics of the broader IMC complex.

 We have scaled back activity on the DND project while we consider alternative options following the IPC decision. This includes the
 commencement of proceedings in the Land and Environment Court of New South Wales (NSW) for a judicial review of the decision
 and the potential submission of an alternate mine plan to the NSW Minister for Planning and Public Spaces for determination of the
 project as State Significant Infrastructure. We expect to provide a further update before the end of the calendar year.

 About us

 South32 is a globally diversified mining and metals company. Our purpose is to make a difference by developing natural resources,
 improving people’s lives now and for generations to come. We are trusted by our owners and partners to realise the potential of
 their resources. We produce bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc at our
 operations in Australia, Southern Africa and South America. With a focus on growing our base metals exposure, we also have two
 development options in North America and several partnerships with junior explorers around the world.

    Investor Relations
    Alex Volante                                                    Tom Gallop
    T      +61 8 9324 9029                                          T     +61 8 9324 9030
    M      +61 403 328 408                                          M     +61 439 353 948
    E      Alex.Volante@south32.net                                 E     Tom.Gallop@south32.net

    Media Relations
    Miles Godfrey                                                   Jenny White
    M      +61 415 325 906                                          T     +44 20 7798 1773
    E      Miles.Godfrey@south32.net                                M     +44 7900 046 758
                                                                    E     Jenny.White@south32.net

 Further information on South32 can be found at www.south32.net.

                                                                       Approved for release by Graham Kerr, Chief Executive Officer
                                                                                            JSE Sponsor: UBS South Africa (Pty) Ltd
                                                                                                                      21 July 2021

 Registered Office Level 35 108 St Georges Terrace Perth WA 6000 Australia
 ABN 84 093 732 597 Registered in Australia

Date: 21-07-2021 08:01:00
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