Good news for 30-year-old industrial giant – the only operation of its kind in South Africa
Eskom and mining and metals group South32 have announced a new renewable energy project for the 30-year-old Hillside Aluminium Smelter in KwaZulu-Natal.
The groups said that they are “advancing discussions” on a new, long-term electricity solution for the Hillside Aluminium Smelter, targeted to commence in 2031.
This is subject to compliance with all regulatory requirements.
The organisations said they have a shared ambition to develop an energy system to boost and support Hillside’s competitiveness.
At the same time, it will contribute to regional economic stability and industrial growth while advancing 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,” they said.
This will be backed up 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 have the potential to benefit Eskom and its broader customer base,” Eskom added.
According to MyBroadband, South32’s Hillside aluminium plant is South Africa’s single biggest electricity consumer, accounting for roughly 5% of Eskom’s total annual energy sales.
It is the country’s only aluminium smelter and the largest in the southern hemisphere. In its 2024 financial year, it produced 720 kilotonnes of aluminium.
It consumes around 10.3 terawatt-hours (TWh) of electricity each year, and its peak draw of 1,205MW is more than the capacity cut from the grid during one stage of load-shedding.
The smelter is also an intense coal-fired power user, giving it a ‘high carbon’ status in terms of emissions.
Eskom said that the Hillside smelter is one of Southern Africa’s most important industrial businesses, supporting a total of 3,650 direct and indirect jobs.
However, its impact is broader, contributing to an estimated 29,000 jobs across the economy, and playing a key role in supplying aluminium to the local downstream industry.
South32 Chief Operating Officer, Noel Pillay, said Hillside has been operating for 30 years, and the project should ensure it can continue to operate for decades to come.
“We have made a solid start. It is important we continue this momentum, working towards a viable, low-carbon energy solution for Hillside from 2031, when the current electricity contract expires,” he said.
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