PRETORIA, April 28 – South Africa’s state power utility Eskom and South32 are collaborating on a renewable electricity plan for the Hillside aluminium smelter in South Africa, with implementation targeted for 2031.
The Hillside plant, located on the country’s east coast, produces around 720,000 metric tons of aluminium annually and is the largest smelter in the southern hemisphere. It currently operates under a 10-year agreement with Eskom that provides discounted electricity tariffs, set to expire in 2031.
South Africa has long offered reduced power tariffs to energy-intensive industries like aluminium smelting, as high electricity costs would otherwise make operations unviable. Power prices in the country have surged nearly tenfold since 2008, contributing to the closure of several industrial plants.
To address this challenge, Eskom and South32 have established a joint team to explore ways of integrating competitively priced renewable energy into the national grid. The goal is to secure a sustainable and cost-effective energy supply for the smelter once the current agreement ends.
According to Noel Pillay, the initiative is aimed at ensuring a viable, low-carbon future for the Hillside operation.
Eskom CEO Dan Marokane said the partnership reflects a broader effort to balance industrial competitiveness with the country’s transition to cleaner energy sources.
The move comes amid growing pressure on energy-intensive industries across the region. South32 recently placed its Mozal aluminium smelter in Mozambique on care and maintenance after failing to secure sufficient and affordable electricity.
The planned transition at Hillside highlights the increasing importance of renewable energy in sustaining heavy industry while reducing carbon emissions in South Africa’s coal-dominated power sector.
