South32 on track to meet FY16 guidance

South32 is on track to meet its FY16 production guidance and reduce controllable costs by $US300 million.

Diversified miner South32 has cut its full-year production guidance for several commodities. (AAP)

BHP spinoff South 32 has cut third quarter production at several businesses but remains on track to meet its full-year guidance across all its units.

The company improved alumina production 6.9 per cent in the three months to March 31 and lifted metallurgical coal, but energy coal production was down 15.9 per cent, nickel was down 8.5 per cent and silver was down 12.7 per cent.

Manganese alloy production was down 56 per cent, with drops also reported in manganese ore, aluminium and lead.

South32 said it is on track to meet its FY16 production guidance and reduce controllable costs by $US300 million ($A385 million).