South32 (ASX:S32) share price slumps amid 'concerning' heavy metals levels in residents

South32 is reportedly working to reduce the amount of dust produced by its Gemco mine following health concerns.

| More on:
Miner looks into the distance as he checks a folder.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The South32 Ltd (ASX: S32) share price struggled today amid reports that dust from the company's Gemco mine could be causing "concerning" levels of manganese in nearby residents.

According to reporting by ABC News, the Anindilyakwa Land Council – representing the traditional owners of Groote Eyland, an island in Arnhem Land – is working with South32 to lessen the dust coming from the manganese mine.

As of Tuesday's close, the South32 share price is $3.66, 1.08% lower than it was at the end of Monday's session.

For context, the S&P/ASX 200 Index gained 1.03% on Tuesday.

Let's take a look at today's news of the metals and mining company.

South32 working to reduce dust from manganese mine

The South32 share price has suffered on the ASX today.

Meanwhile, reports emerged that hair and nail samples from people residing nearby the company's Gemco mine have been found to contain high levels of manganese.

According to ABC News, the Anindilyakwa Land Council commissioned a report into the effects of dust from the manganese mine 8 years ago. Its CEO, Mark Hewitt reportedly told the publication that the report's results can't be released as it hasn't been published.

The publication states that the World Health Organisation has found inhaling manganese can cause "damage to brain functions controlling dexterity as well as the respiratory and reproductive systems".

However, the land council has decided to stop funding the research. Instead, it's working with the company to reduce the amount of dust impacting the community. ABC News quoted Hewitt as saying:

South32, to their credit, immediately embarked on extensive measures to prevent their manganese dust entering into the communities, which are in proximity to mining activities, and that work has been going on for three to four years, and it has definitely made a significant reduction.

The company has since begun spraying the site with water and avoiding the use of machinery nearby residential areas when wind conditions would allow dust to travel.  

South32 is also reportedly monitoring to make sure dust levels don't breach national air quality guidelines. The company's head of external affairs, Liam Stower was quoted as saying:

That monitoring has shown that the ambient dust in the community of Angurugu is below the National Environmental Protection Measure, the NEPM guidelines, so that gives us a high level of confidence about the health and wellbeing of our community.

South32 has been mining at Gemco for more than half a century. It's the largest Manganese mine in the world.

South32 share price snapshot

It's been a good year so far for South32 on the ASX.

Right now, the South32 share price is 46% higher than it was at the start of 2021.

It has also gained 3% since this time last month.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Materials Shares

Factory worker wearing hardhat and uniform showing new metal products to the manager supervisor.
Materials Shares

Looking for 100% gains? These strategic minerals companies might be worth a look, Bell Potter says

Trade and geopolitical tensions spell good news for companies in the strategic minerals sector.

Read more »

Businessman looks with one eye through magnifying glass
Materials Shares

Why is everyone talking about Fortescue shares today?

This mining giant has announced some big news this morning. Here's what you need to know.

Read more »

Two miners standing together with a smile on their faces.
Resources Shares

ASX 200 mining shares lead the market for a second week

BHP, Fortescue, and Rio Tinto shares reset their 52-week highs while the ASX 200 rose 0.73%.

Read more »

A man looking at his laptop and thinking.
Materials Shares

Forget Fortescue shares, this ASX iron ore stock is better

Let's see why Bell Potter is bullish on this under the radar miner.

Read more »

a geologist or mine worker looks closely at a rock formation in a darkened cave with water on the ground, wearing a full protective suit and hard hat.
Materials Shares

Lynas shares crash 41% from their peak: Buy, hold or sell?

Demand for rare earths has soared this year.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Bell Potter names the best ASX critical minerals stocks to buy

Let's see what the broker is saying about these in-demand commodities.

Read more »

Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price
Materials Shares

Guess which ASX mining stock is rocketing 14% on production plans

This miner is making its shareholders smile on Thursday. Let's find out why.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Materials Shares

Gina Rinehart backed ASX rare earths stock jumps 17% on big news

This rare earths stock is getting investors excited on Thursday with some big news.

Read more »