South32 ($9.53 billion) ranked a distant third on the Index according to market capitalisation as at June 30 behind perennial 1-2 positioners Wesfarmers ($43.86 billion down from $47.835 billion at June 30 last year) and Woodside Petroleum ($28.202 billion down from $33.838 billion) – but still a long way ahead of iron ore miner Fortescue Metals Group (5.947 billion, down from $13.545 billion).

Deloitte’s WA clients and markets partner Tim Richards said the WA Index’s drop was driven by an overall slowdown in the state’s mining sector, led by unfavourable movements in commodity prices.

“Significantly, the Index would have lost more ground if not for the listing of South32 in May which at the time added $11.3 billion, or 8.4%, to the market capitalisation of the top 100,” Richards said.

“The listing of South32 is the single largest addition to the Deloitte WA Index in recent years, and is a significant vote of confidence in WA as a global resources centre.

“Commodity prices had a disappointing year largely due to the supply glut in global commodity markets, as production of iron ore and crude oil continued to exceed demand.”

Coal prices have had a fall from grace in recent years from a high of $US132/tonne in January 2011 to the current price of $60/t, which Deloitte said was primarily due to an increase in supply coming from China where coal production has experienced a boom, as well as the Asian giant consuming less coal in an effort to curb pollution.

Coal consumption in China has dropped by almost 8.0% in the first four months of 2015.

The May 18 listing of South32 on the Australian Securities Exchange heralded the arrival of the company which is world’s largest producer of manganese ore, has two exceptionally high quality alumina refineries and strong coal mining and preparation operations, the report stated.

Deloitte said South32 also had “world-leading” ferronickel operations and modern, cost-competitive aluminium smelters.

“With 27,000 people working across Australia, southern Africa and South America, South32 owns large, high quality, well maintained, cash generative operations that are positioned in the first or second quartile of industry cost curves,” Deloitte’s Index report said.

“Supporting this, South32 has a strong balance sheet and an investment grade credit rating.

South32 have clearly stated their company purpose and values.

“Their purpose is to make a difference by developing natural resources, improving people’s lives now and for generations to come, and to be trusted by their owners and partners to realise the potential of their resources.

“The four values of ‘care, togetherness, trust and excellence’ sit at the heart of what it means to be South32.

“The weave, South32’s unique yellow brand mark, was chosen to represent a traditional technique for creating materials by binding together individual threads to create a stronger fabric.”

Deloitte’s report added that the use of this theme in South32’s logo reflected the company’s belief that “no individual person or activity on their own will define the success” of South32.

“It is by working together that they can make a difference,” Deloitte’s report said.

“The company’s diverse range of mining and processing operations produce bauxite, alumina, aluminium, thermal and metallurgical coal, manganese, nickel, silver, lead and zinc which are sold to a diverse range of domestic and international customers.

“With a lean management philosophy designed to reduce costs and increase productivity, South32 is focussed on per-share financial performance rather than volume.”

South32 says that its regional operating model, together with its “relentless focus on safety, relationships and people”, would enable the new entity to “deliver more efficient and productive operations, to become a best in class operator of our assets, and in doing so, deliver sector leading returns for our shareholders”

Deloitte’s report said South32’s regional operating model was just one way it was establishing its own rhythm by taking a “more flexible, agile and entrepreneurial approach” designed to maximise the value of its business.

Perth-headquartered South32 gets its name from the connection with the 32nd parallel south that runs through its two primary regions of Australia and Southern Africa.

It has regional offices located in Perth and Johannesburg and a marketing office in Singapore.

South32’s southern African operations are a significant contributor to its growth and performance.

It has roughly 15,000 employees and contractors in the region across the manganese ore operations at Hotazel, the Metalloys manganese alloy smelter, the aluminium business including smelters at Hillside in South Africa and Mozal in Mozambique as well as the coal business in South Africa which produces coal for domestic and export markets.

Its Australia region includes the Cannington silver mine in northwest Queensland, the Illawarra metallurgical coal operations in the southern coalfields of New South Wales and manganese operations including an open-cut mine in the Northern Territory and a manganese alloy plant in Tasmania.

Atrum Coal’s market cap dropped from 278 million on June 30 last year to $206 million; whereas Coal of Africa jumped from $69 million to $148 million.