The South32 Limited (ASX: S32) share price is taking a beating today.
Shares in the S&P/ASX 200 Index (ASX: XJO) diversified mining stock closed yesterday trading for $3.12. In morning trade on Wednesday, shares are swapping hands for $3.05 apiece, down 2.2%.
For some context, the ASX 200 is up 0.3% at this same time.
This comes following an update on the miner's Groote Eylandt project, which has been hammered by Cyclone Megan.
Located in Australia's Gulf of Carpentaria, the project produces high-grade manganese ore, producing 3,545 KWMT of manganese ore in FY 2023.
Image source: Getty Images
Inclement weather shutters operations
On Monday, South32 reported that operations at its Groote Eylandt Mining Company (GEMCO) had been temporarily suspended due to Tropical Cyclone Megan. South32 owns 60% of GEMCO, with the remaining 40% held by Anglo American.
Management noted that heavy winds and surf had caused structural damage to the wharf.
Investors appeared unconcerned, with the South32 share price closing up 4.7% on Monday.
Today, the miner said that operations remain temporarily suspended. But with weather conditions easing, crews were able to get a better picture of the damage.
According to South32:
Initial assessments have identified flooding in the mining pits, as well as significant damage to a critical haul road bridge that connects the northern pits of the Western Leases mining area and the processing plant.
As for the wharf, the company noted, "Significant structural damage to the wharf and port infrastructure has now also been confirmed."
The miner said it is working to return to safe operations as soon as possible. However, the South32 share price could be under some pressure today as management withdrew guidance on its Australian manganese production.
Investors can expect further updates in the company's pending quarterly report.
South32 share price snapshot
The South32 share price has come under selling pressure over the past year.
With today's intraday moves factored in, shares in the ASX 200 mining stock are down 24% in 12 months.
