South32 secures power for Hillside, weighs green options
PERTH (miningweekly.com) – Diversified miner South32 has finalised an energy supply agreement for its Hillside aluminium smelter, in South Africa.
The miner on Friday said that the National Energy Regulator of South Africa had approved the long-term energy supply agreement between Hillside and national energy provider Eskom, securing the smelter’s energy supply until 2031 under a rand-based tariff with a rate of escalation linked to the South Africa Producer Price Index.
South32 CEO Graham Kerr said that the new agreement further extended the long-term working relationship with Eskom.
“Hillside has been a major Eskom customer for 25 years and this agreement provides power cost certainty for a further ten years, with Eskom receiving a price aligned to long-term tariff policy. Eskom also retains the current flexibility to interrupt supply to the smelter to support management of the national electricity grid and minimise load-shedding.”
Kerr said that the aluminium smelter remained an important contributor to South Africa’s economy, both directly through local employment and through its integration with significant downstream industries that rely on output from Hillside.
“As the world transitions to a low carbon future, we will work with the government, Eskom and other potential partners to explore options to secure a green energy solution for Hillside,” Kerr added.
With the new tariff agreed, the smelter remains competitive on the global cost curve, with operating costs for 2021 expected to reflect the higher power charges from the new agreement incurred since August 2020.
Comments
Research Reports
Projects
Latest Multimedia
Showroom
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
