South32 Ltd.

South32 Ltd. is a senior producer headquartered in Perth, Australia, operating primarily in USA and Australia. The company's portfolio consists of 12 projects, comprising 7 operating mines, 3 development, 1 advanced exploration, and 1 suspended project. Key assets include Cannington, Sierra Gorda, Worsley Alumina, and Hermosa - Taylor. The organization operates as a globally diversified mining and metals company with a business model spanning the full lifecycle from exploration and development to operation and closure. Core operational capabilities include mining, processing, refining, and smelting, supported by a centralized global marketing function that analyzes commodity markets to inform strategic planning and investment decisions. The business model emphasizes a purpose-driven and agile approach, empowering its workforce to drive safety and performance improvements. A key characteristic of the operational approach is the active reshaping of its asset base to align with commodities critical for a low-carbon future. This transformation is pursued through a disciplined framework that balances optimizing existing facilities, unlocking value from development projects, and identifying new opportunities. The enterprise leverages technology and innovation to enhance safety, productivity, and environmental outcomes, with a focus on developing next-generation mining methods and minimizing its operational footprint. Risk management is integrated throughout the business, guided by a framework aligned with international standards to support predictable performance and long-term value creation.

The corporate strategy is centered on a simple framework of optimizing existing operations, unlocking the full value of the business, and identifying new opportunities to reshape the enterprise for the future. Optimization priorities include ensuring safe and predictable performance while continually improving competitiveness. Unlocking value is pursued through people, innovation, technology, and the execution of high-quality development projects. The identification of new opportunities focuses on sustainably reshaping the business towards base metals and other commodities essential for a low-carbon world. The capital management framework underpins this strategy, prioritizing the maintenance of an investment-grade credit rating and safe, reliable operations. A core tenet of this framework is the commitment to distribute a minimum of 40% of underlying earnings as ordinary dividends. Excess capital is allocated competitively to internal projects, acquisitions, greenfield exploration, or additional shareholder returns like share buy-backs or special dividends, ensuring a disciplined approach to value creation. This strategic approach is guided by 7 internal 'breakthroughs' that shape annual business planning and focus organizational efforts on critical priorities.

Executive leadership is spearheaded by a Chief Executive Officer with over 25 years of global experience in the resources sector, including extensive operational and commercial roles prior to leading the organization since its inception in 2015. The Board of Directors, as of June 30, 2024, comprises 10 members, achieving gender balance with 50% female representation. The board's composition reflects a broad cultural and ethnic mix, with 7 directors identified as White, 1 as Asian, and 1 as Black/African/Caribbean. Governance is structured through 4 standing Board Committees, and the full board convened 16 times during fiscal year 2024. The governance framework is aligned with the ISO 31000:2018 risk management standard and utilizes a three-lines operating model for risk oversight. A key leadership philosophy is the 'safety guarantee,' an internal approach designed to instill a culture of chronic unease and reduce risk tolerance. This is supported by specific training initiatives, such as the Active Bystander training undertaken by the Board, which aims to foster a respectful and safe workplace by empowering individuals to address unacceptable behaviors.

The organization's sustainability approach is integrated into its core strategy, focusing on 5 interconnected pillars. A central commitment is addressing climate change, with a target to halve operational greenhouse gas emissions by 2035 from a fiscal year 2021 baseline and a long-term goal of achieving net-zero emissions by 2050. Specific decarbonization initiatives include converting coal-fired boilers to natural gas and deploying advanced energy efficiency technology at smelters. A second Climate Change Action Plan is scheduled for publication in 2025. The enterprise is also developing a formal approach to addressing nature-related risks and opportunities. Social performance is advanced through a commitment to reconciliation, formalized in a second Innovate Reconciliation Action Plan, and targeted human rights training, which was completed by 95% of designated roles in fiscal year 2024. Workplace safety is managed through a multi-year Safety Improvement Program, which includes the LEAD Safely Every Day leadership training and the development of a new global psychosocial risk framework. Environmental stewardship is demonstrated through contextual water targets, a water use efficiency program, and progressive land rehabilitation, with 416 hectares under active rehabilitation in the reporting year.

The corporate structure underwent significant transformation in fiscal year 2024, reflecting a strategic simplification and realignment. The company entered into a binding agreement to sell Illawarra Metallurgical Coal to an entity owned by Golden Energy and Resources Pte Ltd and M Resources Pty Ltd, with the transaction expected to complete on August 29, 2024. It also completed the sale of its 50% interest in the Eagle Downs metallurgical coal project to a subsidiary of Stanmore Resources Limited on August 12, 2024, and entered a binding agreement to divest the Metalloys manganese alloy smelter. To expand its exploration portfolio, the organization increased its interest in Aldebaran Resources Inc. to 14.8%, providing exposure to the Altar copper project, and acquired a 50.1% interest and operatorship of the Chita Valley copper exploration project. The company maintains a strategic exploration alliance with AusQuest. Key joint venture partners include KGHM Polska Miedz at the Sierra Gorda operation and Anglo American Plc at both the Australia Manganese and South Africa Manganese operations. As of July 31, 2024, substantial shareholders included BlackRock Group, State Street Corporation, and Vanguard Group, each holding over 5% of voting rights.