Cannington output scaled down amid underground challenges
Diversified miner South32 has cut production expectations at its Cannington silver, lead and zinc operation in north-west Queensland, after a review of the mine plan highlighted rising underground complexity and declining grades.
Payable zinc equivalent production fell 20% to 241 900 t in the 2025 financial year ended June 30, as Cannington managed more intensive underground activity while processing lower grades in line with its mine plan.
The miner said it would reduce mining volumes to an average of 1.8-million tonnes a year over the 2026 to 2032 financial years to ensure reliable output, with processing rates also revised lower. Work is under way to optimise costs, including contractor and equipment requirements, in line with the new production profile.
The Cannington ore reserve stands at 10-million tonnes, supporting six years of production. However, South32 is targeting life extensions through its 53-million-tonne underground mineral resource and a potential openpit development that could unlock value from an additional 25-million tonnes.
Silver remains a key focus, with higher prices providing scope to capture further upside, the company said.
The miner expects payable zinc equivalent output of 200 600 t in 2026, comprising 40 000 t of zinc, 87 000 t of lead and 8.2-million ounces of silver, rising slightly to 204 700 t in the 2027 financial year.