Diversified miner South32’s Hillside Aluminium subsidiary has partnered with the Automotive Industry Transformation Fund (AITF) and the Department of Trade, Industry and Competition (dtic) to provide about R200-million in concessional financing to support Bingelela Alloys’ continued production of rim alloys in Richards Bay, KwaZulu-Natal.

Hillside Aluminium supplies Bingelela Alloys with liquid aluminium which is manufactured into a rim alloy product at its semi-fabrication facility at the former Bayside Casthouse, supporting local jobs.

The product produced by Bingelela Alloys is supplied to Maxion Wheels and Borbet and ultimately reaches six out of the seven local original-equipment manufacturers in South Africa, including BMW and Toyota.

South32 says the financing will enable Bingelela Alloys to buy two new furnaces and relocate the rim alloy casting line within the Casthouse, enabling improved production and supporting the sustainability and growth of the downstream aluminium industry in South Africa.

Hillside Aluminium has previously provided interest-free loans to Bingelela Alloys to support its current operations.

“Hillside Aluminium is proud to support Bingelela Alloys. Its rim alloy products are supplied to some of the world’s largest and prestigious automotive manufacturers after further processing,” says South32 Hillside Aluminium operations VP Calvin Mkhabela.

As the only producer of primary aluminium in South Africa, he says downstream manufacturers such as Bingelela Alloys depend on the liquid aluminium supplied by Hillside Aluminium on competitive terms to support the growth of the local industry and create local jobs in the Richards Bay area.

“We will continue to help South Africa’s downstream aluminium industry to grow and to play a leading role in accelerating its development. South32 is also assessing a pipeline of potential opportunities for the downstream aluminium industry in Richards Bay,” Mkhabela adds.

“This partnership is a prime example of how targeted strategic collaboration between the private sector and government can drive industrialisation. It demonstrates a shared vision for achieving high industrial growth and fostering economic prosperity.

“We extend our sincere thanks to South32, the AITF and the dtic for their unwavering belief in our potential and for this pivotal investment in the future of Bingelela Alloys and the South African manufacturing sector,” says Bingelela Alloys chairperson Sipho Zikode.

“We are proud to collaborate with South32 Hillside Aluminium and the dtic on this major funding initiative. Over the past five years, the AITF has not only grown but multiplied its impact across the value chain.

“Partnerships such as this reinforce our mandate to support the localisation of automotive components and the beneficiation of minerals critical for new energy vehicles. In doing so, we continue to act as a regenerative force – seeding opportunity and shaping a sustainable, globally competitive automotive industry in South Africa,” says AITF chief investment officer Tshepo Rapudi.

“The dtic will continue to support the development of automotive component manufacturing companies such as Bingelela. This is through the South African Automotive Masterplan 2035, whose key objective is to deepen local value addition and reach 60% by 2035,” says dtic policy analyst Mzwakhe Mbatha.