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 south32.net 21 July 2021 ILLAWARRA METALLURGICAL COAL IMPAIRMENT 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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.