Mining major BHP Billiton is focusing on reducing its carbon footprint by implementing a culture of energy efficiency in the workplace and introducing streamlined, energy efficient technologies at its operations in South Africa.

BHP Billiton Aluminium South Africa president Lucas Msimanga tells Mining Weekly that the company is committed to sustainability and building an environment-friendly culture in the workplace to curb its emissions and reduce the negative impact of any proposed carbon tax.

“We are working with government and other industries in terms of understanding the application of carbon tax – it has to be managed or it will have a dire impact on the smelters, which could affect their viability,” he says.
Msimanga adds that the company has participated in several forums, working closely with government, to determine the most effective design features and implementation process for a carbon pricing mechanism so that South Africa can begin the transition to a lower carbon economy.

“The company is fully aligned towards an environment-friendly green economy. The first major effort we are implementing to reduce our carbon footprint is tracking our energy consumption for each ton of aluminium produced.

“BHP Billiton uses energy efficient technologies in its smelters. At the Richards Bay operation, in KwaZulu-Natal, we have undertaken a number of projects to improve our energy efficiency, including adopting an energy monitoring and management system, improved process controls, improved electric motor system controls and variable speed drivers, introduced efficient utility systems, brought in computer control of the electrolysis process, and introduced state of the art point feed prebake technology. We also use energy-saving light bulbs, turn off the geysers when they are not being used and try to save energy in all our peripheral activities,” he notes.

Msimanga notes that the company will continue working with employees to instil an energy efficient culture by engaging them in and encouraging them to imple- ment energy-saving initiatives in their communities.

He points out that the company’s recently built enterprise development centre was designed using energy- and cost-saving techniques.

“South African culture still has a long way to go before it can be considered as more energy efficient and energy aware,” Msimanga says.

Eskom

Msimanga told IOL’s Business Report in April that BHP Billiton cut production in 2008 at its Bayside plant, in Richards Bay, to help the country avert a power crisis.

“We still maintain the 50% [reduction] at Bayside,” he said, noting that this was imposed in 2008. “In line with our contracts, power to our smelters continues to be interrupted – usually over peak periods – to help Eskom manage their power supply to its customers.”

He emphasises that it is important to understand the background to these con- tracts between Eskom and BHP Billiton.

“The smelters were built in the 1970s through incentives and invitations to acquire investment and absorb the excess electricity that was available at that time.

“At that point, to stimulate industriali- sation, there was more than enough electricity available. Investing in a smelter is a multibillion-dollar investment; therefore, long-term investments are needed, which is why the contracts at the time were designed the way they were,” Msimanga explains.

He adds that because Bayside was a success, at the time there was a need to improve older technology to include more energy efficient technology, which meant that a larger investment was needed.

Msimanga further notes that the Bayside smelter gave rise to the Hillside and Mozal smelters.

“If a change in the contracts with Eskom were to occur, the viability of the Hillside and Bayside smelters would be compromised,” he states.

Meanwhile, Msimanga points out that the Bayside smelter, which produces aluminium for consumption by Pietermaritzburg- based aluminium manufacturer Hulamin, is completely dedicated to the local alu- minium industry.

“Seventy-five per cent of the country’s aluminium needs are met by the Bayside smelter,” he says.

Msimanga adds that BHP Billiton assists the local economy directly and indirectly and has spent more than R300-million on community development programmes over the last five years.

“The aluminium industry is challenged by price and commodity outlook. We are working hard, internally, to ensure that it is as efficient as possible, working closely with our stakeholders to continue safeguarding the sustainability of the smelters,” he notes.

Msimanga points out that one of the major challenges the industry faces is the availability of electricity.

“There has been an evolution in terms of technology, which is constantly upgraded to meet energy-saving regulations. The company has become more technologically efficient on a global scale,” he notes.