South32 is set to make good on its promise to significantly reduce its cost base, revealing on Thursday it will shave 25 per cent off its group costs this financial year. 
The cuts are part of the miner's plan to reduce costs by $US350 million ($483 million) by the end of the 2018 financial year, and came as South32 also vowed to reduce capital spending by more than the 9 per cent it has previously promised. There was little explanation about where the savings would come from, but it has been speculated that South32's shift to a "regional" model will enable the company to operate with a much smaller staff. The austere predictions emerged in South32's   September-quarter results, which included strong performance from the company's Australian assets but continued problems in South Africa.
A review of the South African manganese business continues, with closure looking increasingly possible.
The company has also suspended 3 per cent of aluminium production in South Africa on the back of a weak market and problems with unreliable electricity supply.
"We continue to take decisive action to maximise financial performance, rather than volume," said South32 chief Graham Kerr.
By contrast, production of alumina at WA's Worsley rose 11 per cent as the division bounced back from maintenance.
Illawarra Coking Coal produced 5 per cent more than in the   June quarter, despite a week-long strike in   August, while manganese production in the Northern Territory was also better than expected.
Silver production from Queensland's Cannington mine has been forecast to slide for the next two years, but the   September quarter proved an exception with production rising 20 per cent higher than last quarter. The 6.28 million ounces of silver produced puts South32 well ahead of the pace required to achieve full year guidance of 21.65 million ounces, but South32 cautioned the strong performance would be temporary.
Lead and zinc production from Cannington was steady, but sales of zinc surged 19 per cent higher than the previous quarter and 27 per cent higher than the same time last year.