(Adds capital expenditure guidance, proposed consolidation of functions, chairman comment, half-year revenue)
Feb 15 (Reuters) - Australian miner South32 Ltd S32.AX on Thursday reported a 14 percent jump in half-year underlying profit helped by higher production of manganese, of which it is the world's top producer, while also announcing consolidation plans for the group.
The miner, a BHP BHP.AX spin-off, posted $544 million in underlying profit for the half year to Dec. 31, compared with $479 million a year earlier. This missed the average estimate of four analysts of $574 million.
"We achieved record production at Australia Manganese and Mozal Aluminium, increased production guidance at South Africa Manganese in response to favourable market condition" said CEO Graham Kerr. The company last month said manganese ore output rose 21.8 percent in the December quarter from a year earlier. declared an interim dividend of 4.3 cents per share, higher than the prior period's 3.6 cents a share, while also declaring a special dividend of 3 cents per share.
The company lowered its full-year sustaining capital expenditure forecast by $5 million to $465 million reflecting a reduction in expenditure at Illawarra mine.
The miner also said it proposes to consolidate functions across the group after it decided to manage its South Africa Energy Coal as a standalone entity, adding it would commence consultation with employees and key stakeholders.
It expects to give an update on the same by the second half of fiscal 2018.
"Removing our regional structures will allow us to have more direct lines of communication, streamline our processes and further reduce duplication," the company said in a statement.
Earlier this month, South32 said its South African coal assets will be set up as its own business within six months after South 32 received a number of offers for the assets which it put up for sale in November. for the period rose 8 percent to $3.49 billion despite mounting costs.