RICHARDS BAY (miningweekly.com) – Diversified miner South32’s Hillside Aluminium smelter in Richards Bay, KwaZulu-Natal, could continue operating for another 20 to 30 years if a competitive long-term electricity agreement is secured with State-owned power utility Eskom.

This was stated by South32 executives at a gala event to celebrate the smelter's 30 years in operation.

During a media briefing, South32 CEO Graham Kerr said the decision to build the Hillside Aluminium smelter in the early 1990s required courage and belief in South Africa’s future at a time of political and economic uncertainty, adding that the smelter has since become a key contributor to industrialisation, employment and regional economic development.

From 2015 to 2024, Kerr said, the smelter contributed over R35-billion to South Africa’s GDP and currently supports about 3 650 direct and indirect jobs, while an estimated further 29 000 jobs were linked to the broader aluminium value chain.

“Hillside’s success over the past 30 years is a testament to what can be achieved through collaboration between the private sector and the government. By strengthening local supply chains, stimulating downstream manufacturing and reinforcing government’s priorities to grow the economy and create jobs, Hillside has been a powerful catalyst for growth.

“We are particularly proud of Hillside’s role in supporting the downstream aluminium industry as a supplier to local companies that manufacture products for sale domestically and abroad,” Kerr said.

Marking the thirtieth anniversary of Hillside Aluminium, President Cyril Ramaphosa said the smelter remained a symbol of South Africa’s industrial capacity and global competitiveness, while also reflecting the long-term significance of former President Nelson Mandela officially opening the plant on April 19, 1996, as a sign of investor confidence in the country’s democratic future.

“Hillside Aluminium’s export footprint is a practical demonstration that South African industries can meet demanding global standards and hold their own in world markets. 

“Hillside aluminium’s participation in global market systems, such as being listed on the London Metals Exchange and meeting certificate requirements, underscores the confidence in South Africa’s quality and traceability,” Ramaphosa said. 

Hillside is working towards providing funding support for an aluminium rod manufacturing facility in Richards Bay, and the facility aims to supply local content in support of Eskom’s plans for a 14 000 km grid expansion. Additionally, Hillside is working with local partners on a potential dross plant and billet alloy plant.

South32 COO Noel Pillay highlighted that Hillside’s continuous baseload electricity consumption played an important role in maintaining stability on South Africa’s electricity grid, while the smelter also assisted State-owned power utility Eskom during periods of high demand through load curtailment arrangements.

He highlights that Hillside is Eskom’s single largest industrial customer, with its consistent electricity demand profile playing an important role is keeping South Africa’s electricity grid stable and also delivering significant revenue for Eskom every year.

Pillay added that South32 and Eskom had spent the past four years exploring long-term renewable and lower-carbon power solutions for Hillside, adding that solar and wind energy currently appeared to be the most viable technologies for the operation.

Transmission infrastructure remains one of the biggest constraints to scaling renewable energy supply, particularly given that much of the country’s best wind and solar resources are in provinces such as the Northern and Western Cape, where additional grid capacity is needed.

Meanwhile, Pillay highlighted that Hillside continues to prioritise jobs and social impact alongside technology improvements, adding that South32 remains cautious about introducing automation in ways that could negatively affect employment.

“We are immensely proud of Hillside’s investment in local communities, which focus on improving education, economic participation and health outcomes. Its social investment program has reached more than five-million people over the past five years along.

“We look forward to Hillside continuing to play a critical role in South Africa’s growth and development story,” Pillay concludes.