South32 says South African Samancor JV mines will remain closed until review completed.

 

BHP Billiton spin-off South32 said its partly-owned Samancor Manganese joint venture mines in South Africa will remain closed 

 

until the completion of its strategic review.South32, which listed earlier this year, inherited BHP's 60 per cent stake in the joint venture it operates with Anglo American, but production was suspended at the mines following a death at the Mamatwan mine on November 2.Manganese is a key steel-making ingredient, but the commodity has fallen to its weakest price since 2011 amid a global rout in iron ore and steel, which have also plunged to their lowest prices in years.Samancor is the world's largest producer of manganese, and operates projects in South Africa and Australia.South32 said mining activity is likely to restart in January, but the year's output will be hit hard by the shutdown."While production will be significantly impacted in the 2016 financial year, rail and customer commitments will be met by drawing down inventory during this period," South32 said."A further update for the joint venture’s South African manganese 

mines and Metalloys smelter will be provided upon completion of the strategic review."