South32 has assessed cyclone damage at one of its remote mines. 

In a significant blow to the global manganese supply, South32 has announced that it will halt manganese ore exports from Groote Eylandt for the remainder of 2024 due to extensive damage caused by Tropical Cyclone Megan. 

The cyclone, which struck the island in March, brought about severe destruction to both the mining infrastructure and the wharf facilities, essential for manganese exports.

Groote Eylandt, in the Gulf of Carpentaria, experienced an unprecedented 681 millimetres of rainfall over the course of two days in mid-March, accompanied by wind gusts exceeding 100 kilometres per hour. 

The adverse weather conditions resulted in the MV Anikitos, loaded with 40,000 tonnes of manganese, being trapped and repeatedly smashed against the wharf by cyclonic winds and towering seas, ultimately causing significant portions of the wharf to collapse.

As part of its quarterly update to the Australian Securities Exchange (ASX) this week, South32 revealed that operations at the GEMCO mine remain suspended, with repairs and engineering assessments ongoing. 

The company anticipates that export operations could resume by the third quarter of the 2025 fiscal year, with partial ore export capabilities potentially being established ahead of full restoration.

The financial implications of the cyclone and the subsequent disruption in operations have yet to be disclosed by South32. 

However, the company says efforts are underway to evaluate alternative shipping options.

The Groote Eylandt mine contributed $1.5 billion to South32's earnings in the 2023 financial year and accounted for approximately 15 per cent of global manganese production.

In the wake of the cyclone, Groote Eylandt has also faced critical shortages of fuel and other supplies. 

South32 confirmed that diesel and food are currently being delivered via a barge facility, with a focus on prioritising diesel for power generation. 

The company says it is committed to the safety and well-being of its workforce and the broader Groote Eylandt community during this challenging period.

Shares in Jupiter Mines, another ASX-listed manganese producer, surged by 9 per cent following the news of the anticipated global supply constraints.