In a joint media statement South32 and Eskom have announced they are advancing discussions on a new, long-term electricity solution for the Hillside Aluminium Smelter in KwaZulu-Natal, targeted to commence in 2031, subject to compliance with all regulatory requirements.
South32’s Hillside Aluminium Smelter plays a significant part in South Africa’s industrial economy.
[Source: South32]
Both organisations have reaffirmed their shared ambition to develop and deliver a long-term energy solution that supports Hillside’s competitiveness, contributes to regional economic stability and industrial growth, and aligns with South Africa’s broader decarbonisation objectives.
To support this ambition, South32 and Eskom have established a joint working group to explore mechanisms that can bring competitively priced renewable energy into the national grid, backed by affordable firming capacity, within the existing regulatory framework. While this work will help support the long-term energy needs of Hillside, the solutions being assessed also have the potential to benefit Eskom and its broader customer base.
This signals a step towards supporting the future of one of Southern Africa’s most important industrial businesses. Hillside supports a total of 3 650 direct and indirect jobs, contributes to an estimated 29 000 jobs across the economy, and plays a key role in supplying aluminium to the local downstream industry.
South32 Chief Operating Officer, Noel Pillay, said: “As Hillside celebrates 30 years of operation this year, we are collaborating with the Government of South Africa and Eskom to secure its future for decades to come.
“We have made a solid start. It is important that we continue this momentum, working towards a viable, low-carbon energy solution for Hillside from 2031, when the current electricity contract expires.”
Eskom Group Chief Executive, Dan Marokane, said: “Eskom values the longstanding partnership with South32 and the important role Hillside Aluminium plays in South Africa’s industrial economy. Through this joint process, we are working to develop a long-term energy solution that supports industrial competitiveness and advances South Africa’s transition to a lower-carbon electricity system.
“Exploring innovative mechanisms to integrate renewable energy into the grid with appropriate firming solutions, this collaboration has the potential to secure the future of Hillside, and to contribute to strengthening the resilience and sustainability of the national electricity system for the benefit of all South Africans.”
For more information visit: www.eskom.co.za