PERTH, March 5, 2026, 15:07 AWST
- South32 CEO Graham Kerr says the company could soon have roughly 90% of its production tied to base metals and exploration.
- The miner is just weeks out from shifting Mozambique’s Mozal aluminium smelter into care and maintenance.
- Kerr will pass the reins to Matthew Daley sometime later this year.
South32 Ltd is accelerating its shift toward base metals, Chief Executive Graham Kerr said, pointing to a portfolio increasingly weighted to North America. The miner is navigating both the upcoming closure of its aluminium smelter in Mozambique and a leadership change. “I think most people are looking for pure plays,” Kerr said. If the current strategy works out, he expects “roughly 90%” of the company’s production will be tied to base metals and exploration. Financial Mail
Now, those comments carry weight. South32 remains a hybrid play—offering metals exposure (think copper, zinc), but still saddled with energy-intensive smelters. Investors have been marking down industrial assets facing volatile power costs, especially as governments push for more control.
Kerr’s long-running strategy: cut coal, load up on copper and other base metals. The goal? Attract a market hungry for streamlined narratives and growth that isn’t tied to low-cost energy. Larger miners have piled into the same assets, so mid-sized outfits like South32 now face the challenge of showing they can actually build—rather than just acquire—new operations.
South32 is betting on the Americas for growth. The focus: its Hermosa project in Arizona and a stake in Chile’s Sierra Gorda copper mine. CEO Kerr has made it clear—South32 intends to shift value toward these holdings as construction ramps up and studies turn into boots-on-the-ground progress.
South32 is moving to mothball its Mozal aluminium smelter in Mozambique, as power shortages drag on and supply talks stay unresolved. Back in February, the company said it would place the plant on “care and maintenance” — industry code for halting output but keeping facilities safe for a potential restart. “We’re running out of things in the next week or so, of pitch and coke,” CEO Kerr told analysts on an earnings call. “We’re definitely heading for care and maintenance.” Reuters
According to Kerr, Mozal directly employs over 2,000 people and relies on about as many contractors. The plant, he noted on the call, represents close to one-third of Mozambique’s manufacturing jobs. Now, with the shutdown, political risk is in focus for major industrial operations—even when commodity prices aren’t the problem.
South32’s leadership is about to shift, with ex-Anglo American executive Matthew Daley tapped as incoming CEO. He’ll come on board as deputy chief executive before Graham Kerr exits. Investors are still pushing for quicker moves on deals. “What are we flagging, that they are going to buy some copper?” Allan Gray’s chief investment officer Simon Mawhinney said at the time. Reuters
Another wrinkle for shareholders cropped up in the near term. South32 shares went ex-dividend on Thursday on both the ASX and London Stock Exchange—anyone buying now misses out on the next interim dividend. The record date is locked in for March 6, with payment slated for early April. Investegate
Execution is the big question mark here. South32’s US projects don’t come cheap, and they move at a crawl—any overruns on spending or schedule could easily undermine the pitch for a cleaner, more lucrative portfolio. Plus, even with Mozal coming offline, the company isn’t done with smelters yet, so power costs and regulatory changes remain a live issue for the stock.
