South32, a major player in the global metals and mining sector, has received crucial Australian government approval for its Worsley Mine Development Project. This landmark decision, granted under the Environmental Protection and Biodiversity Conservation Act of 1999, secures the long-term supply of bauxite, a vital raw material for aluminium production, and reinforces the sustainability of Worsley Alumina's operations for the foreseeable future. The project's approval is particularly significant given the rising global demand for aluminium, driven by its essential role in the energy transition, electric vehicles, and renewable energy technologies.

The Worsley project will underpin the continued operation of Worsley Alumina, one of Australia's largest alumina refineries, ensuring a stable supply of bauxite for aluminium production. Mining in the newly approved bauxite areas is slated to commence in the fourth quarter of South32's 2025 financial year, with production expected to continue through at least 2036. This development is not only critical for Worsley Alumina but also for the local economy, as the facility has been a significant employer in the region for over four decades. The project's approval provides long-term certainty for the workforce and the surrounding communities.

South32's CEO, Graham Kerr, expressed his satisfaction with the government's decision, emphasizing the positive impact on Worsley Alumina, its workforce, the Peel and Southwest communities, and the local economy. The timing of this approval is particularly opportune, coinciding with a surge in global aluminium demand. This demand is fuelled by the metal's critical role in key sectors like electric vehicles, renewable energy infrastructure, and other applications vital for a sustainable future. The Worsley project will contribute to meeting this growing need, ensuring a reliable supply of aluminium for these crucial technologies.

Demonstrating its commitment to responsible production, the Worsley Alumina refinery holds certification from the Aluminium Stewardship Initiative, a testament to its adherence to environmentally and socially responsible practices. South32 underscores the importance of aligning aluminium production with global decarbonization efforts, recognizing the increasing scrutiny on sustainable sourcing and manufacturing processes. This commitment extends beyond bauxite mining to the broader aluminium production chain.

South32 is actively pursuing strategies to minimize the carbon footprint of its aluminium production, particularly at its Hillside Aluminium smelter in South Africa, the largest such facility in the southern hemisphere. Hillside's reliance on coal-fired electricity poses a challenge in the context of increasing global emphasis on decarbonization, particularly with initiatives like Europe's carbon border adjustment mechanism (CBAM), which penalizes aluminium produced using high-carbon energy sources.

To address this challenge, South32 is proactively collaborating with South Africa's state-owned power utility, Eskom, and other partners to develop low-carbon energy solutions for Hillside. A Memorandum of Understanding has been signed with Eskom to explore a potential agreement to purchase clean energy attributes from the Koeberg nuclear power station. This initiative aims to ensure the smelter's continued competitiveness in global markets increasingly focused on sustainable products.

The transition to low-carbon energy sources is paramount for the long-term viability of aluminium production, especially considering the escalating demand for aluminium in electric vehicle batteries and renewable energy applications. South32 recognizes the importance of working in close collaboration with government and community stakeholders to facilitate a just and sustainable energy transition. The approval of the Worsley Mine Development Project not only strengthens South32's position as a key player in the global aluminium market but also reinforces its commitment to sustainable practices in the face of mounting environmental challenges and evolving market dynamics.