Richards Bay, KwaZulu-Natal — South32’s Hillside Aluminium smelter could operate for another 20 to 30 years if it secures a competitive long-term electricity supply agreement with Eskom, the company has said.
The milestone was announced during a gala event celebrating the smelter’s 30 years of continuous operation.
Speaking at a media briefing, South32 CEO Graham Kerr described the decision to build Hillside in the early 1990s as an act of courage and confidence in South Africa’s future during a period of significant political and economic uncertainty.
“From 2015 to 2024, Hillside contributed more than R35 billion to South Africa’s GDP,” Kerr said. The smelter currently supports approximately 3,650 direct and indirect jobs, while an estimated 29,000 additional jobs are linked to the broader aluminium value chain.
Kerr highlighted the smelter’s role as a catalyst for industrial growth:
“Hillside’s success over the past 30 years is a testament to what can be achieved through collaboration between the private sector and government. By strengthening local supply chains and stimulating downstream manufacturing, it has reinforced government priorities to grow the economy and create jobs.”
He added that the company is particularly proud of Hillside’s position as a reliable supplier to local manufacturers that produce aluminium products for both domestic and international markets.
President Cyril Ramaphosa, who addressed the anniversary celebrations, described Hillside as a powerful symbol of South Africa’s industrial capability and global competitiveness. He recalled former President Nelson Mandela officially opening the plant on 19 April 1996 as a clear vote of confidence in the country’s democratic future.
“Hillside Aluminium’s export footprint is a practical demonstration that South African industries can meet demanding global standards and hold their own in world markets,” Ramaphosa said.
The President also noted the smelter’s compliance with international market requirements, including its listing on the London Metals Exchange, as evidence of South Africa’s quality and traceability standards.
Hillside is currently working on several initiatives to strengthen the local aluminium value chain, including funding support for a new aluminium rod manufacturing facility in Richards Bay. The plant is intended to supply local content for Eskom’s planned 14,000 km electricity grid expansion. The smelter is also collaborating with local partners on a potential dross plant and billet alloy facility.
South32 Chief Operating Officer Noel Pillay emphasised Hillside’s critical role in the national electricity system. As Eskom’s single largest industrial customer, the smelter provides consistent baseload demand that helps stabilise the grid and generates significant revenue for the utility. It also supports the system through load curtailment during periods of high demand.
Pillay revealed that South32 and Eskom have spent the past four years exploring long-term renewable and lower-carbon power solutions for Hillside, with solar and wind currently appearing to be the most viable options. However, he noted that transmission infrastructure remains a major constraint, particularly because the best renewable resources are located in the Northern and Western Cape.
Despite ongoing technological advancements, Pillay stressed that job protection remains a priority.
“We are immensely proud of Hillside’s investment in local communities, which focus on improving education, economic participation and health outcomes,” he said. “Its social investment programme has reached more than five million people over the past five years.”
Pillay concluded: “We look forward to Hillside continuing to play a critical role in South Africa’s growth and development story.
