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BHP may close aluminium smelter in South Africa

BHP may close aluminium smelter in South Africa

Photo by Bloomberg

20th January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mining giant BHP Billiton on Monday confirmed that it has begun a formal consultation process with the employees at its Bayside aluminium facility, in South Africa, with a view to ceasing operations.

A spokesperson for the miner told Mining Weekly Online that the company had initiated a review of the Bayside operation in September 2012, as the smelter was under “significant and ongoing financial pressure”.

“Our aim is to minimise the impact of any changes on employees and the local downstream industry,” the Australia-based spokesperson said.

“BHP Billiton has been in ongoing discussions with its stakeholders to discuss the challenges faced by the business, explore options for the Bayside operation and ensure a sustainable aluminium business can operate in Richards Bay and South Africa.”

She noted that to support the ongoing supply to the local customers, the casthouse within the Bayside operation would continue to operate with supply from BHP’s neighbouring Hillside smelter while we assess options for its future.

Decommissioning and rehabilitation of the remainder of the Bayside site, if undertaken, would provide an additional source of employment for the duration of the project.

BHP’s South Africa VP for communications and stakeholder relations, Lulu Letlape, said that as the company had worked through the consultation process, the health, safety and wellbeing of its employees would remain a priority.

We are focused on mitigating the impact of potential job losses while ensuring the existence of a sustainable aluminium business in Richard’s Bay,” she added.

Bayside is the only producer of value-added primary aluminium products in Southern Africa that are all used in the local market.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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