Coal news and updates

Australia's South32 hunts for copper as it returns cash to shareholders

South32 eyes larger stake in Sierra Gorda from KGHM

Underlying profit more than halves to $380 mln, from $916 mln

Announces $200 mln share buyback

Recasts, adds CEO comments in paragraphs 1-7, manganese comments in paragraphs 9,10

By Melanie Burton

MELBOURNE, Aug 29 (Reuters) -Diversified miner South32 S32.AX would consider both buying and building from existing mines to get more copper, its CEO said on Thursday, as its yearly profit beat market expectations and it returned cash to its shareholders.

The miner is reshaping its portfolio since it was spun off from BHP BHP.AX a decade ago to produce mostly base metals, and CEO Graham Kerr is, like many miners, keen to get his hands on more of the metal deemed key to the energy transition.

"We would love in the ideal world to buy a larger stake in Sierra Gorda because we see a lot of opportunity and potential there," Kerr told Reuters in an interview.

South32 owns a 45% stake in the northern Chilean mine with Poland's KGHM KGH.WA, which has not so far indicated it is open to selling, he said. KGHM did not immediately respond to a request for comment. The mine produced 86,200 tonnes of copper last year.

Miners are having to become more aggressive to secure new projects or risk missing out, given the anticipated demand for the metal.

From existing operations, South32 expects to be able to quantify in the next year the size of copper potential around its Peak deposit in Arizona.