Australia’s South32 (ASX, LON, JSE: S32) is proceeding with an ambitious plan to advance the copper-rich Arctic deposit in northwestern Alaska through its 50-50 joint venture with Trilogy Metals (TSX, NYSE-A: TMQ).
The $35-million work program, approved by the companies’ Ambler Metals joint venture during the quarter, targets the high-grade Arctic polymetallic deposit and a range of exploration prospects across the underexplored Ambler mining district, South32 CEO Graham Kerr said in the company’s quarterly report released Thursday.
The work forms part of the broader Upper Kobuk Mineral Projects, which span about 1,900 sq. km and include the copper-rich Arctic and Bornite deposits.
As part of its Arctic push, South32 sold about $17.8 million worth of Trilogy Metals shares this past quarter to the U.S. Defense Department, giving Washington a 10% stake in the Canadian explorer. The transaction is expected to close in the second half of South32’s 2026 fiscal year.
Work ahead
Most 2026 exploration activity will centre on the Arctic deposit, with geotechnical and condemnation drilling planned to support mine design, infrastructure placement and long-term production planning. Ambler Metals also plans to prepare the Bornite camp for multi-year use, with geotechnical and exploration drilling scheduled to begin in the summer.
The joint venture intends to re-establish an independent management team in 2026 to oversee the next phase of development at the Upper Kobuk projects.
Over the coming years, the team will focus on advancing permitting at Arctic, completing technical studies, executing mine-design drilling programs and expanding community engagement, workforce development and local participation.
Operating results
South32 commented on its Alaska plans after reporting better-than-expected operating results for its fiscal second quarter. Alumina and aluminium production each rose 3%, while manganese ore and zinc output climbed 8% and the company produced 15% more silver.
Citing “strengthening market conditions,” CEO Graham Kerr reaffirmed the company’s full-year production guidance. Operating unit costs are tracking in line with or below guidance across most operations, the company said.
South32’s outlook “suggests costs are lower than [the full-year guidance] and our previous expectations overall,” BMO Capital Markets analyst Alexander Pearce wrote in a note.
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