Australia's South32 Advances Cannington Lead-Zinc-Silver Mine Life Extension to FY2033

en.Wedoany.com Reported - Australian miner South32 released its FY2026 (July 1, 2025 to June 30, 2026) results and annual report on August 27, confirming it will continue advancing the life extension of the Cannington lead-zinc-silver mine. Located in northwest Queensland and wholly owned by South32, the mine uses underground mining with surface ore processing, primarily producing silver-bearing lead concentrate and zinc concentrate, making it one of the world's major silver and lead producing mines.

In February this year, South32 disclosed that underground ore reserves at Cannington increased by 28%, extending the mine's reserve life by approximately two years. As of the end of June 2026, the mine's underground ore reserves stood at approximately 11 million tonnes, supporting around 7 years of production through to FY2033 (July 1, 2032 to June 30, 2033).

To extend the service life of the underground mine, South32 will invest between US$65 million and US$80 million in FY2027 (July 1, 2026 to June 30, 2027) and FY2028 (July 1, 2027 to June 30, 2028) for upgrades to mine ventilation and electrical infrastructure, while also assessing the development potential of deeper resources.

South32 is advancing a pre-feasibility study for an open-cut development option. The option corresponds to approximately 27 million tonnes of mineral resources, and the company plans to make a final investment decision in the first half of FY2028 (July to December 2027).

In FY2026, Cannington's payable zinc equivalent production was 205,400 tonnes, down 12% year-on-year, primarily due to lower planned mining grades; ore throughput increased by 11%, partially offsetting the impact of lower grades. Financially, the mine's underlying EBITDA increased by US$170 million year-on-year to US$451 million, driven mainly by higher metal prices and lower unit costs. South32 expects payable zinc equivalent production of 290,000 tonnes in each of the next two fiscal years.

If both the underground life extension and open-cut development options proceed smoothly, the supply horizon for Cannington's lead, zinc, and silver products will be further extended. The open-cut development option is currently still at the study stage, with the final construction scale and implementation timeline yet to be determined.