Eskom and South32 have established a joint working group to develop a new electricity supply solution for the Hillside aluminium smelter in KwaZulu-Natal as the current power agreement approaches expiry in 2031.
The companies confirmed that the engagement is focused on identifying a competitive, long-term electricity supply arrangement with particular emphasis on incorporating renewable energy into the grid mix.
According to the companies, the objective is to support a “low-carbon energy solution” for Hillside while maintaining the smelter’s operational competitiveness.
Hillside produces around 720 000 tonnes of aluminium per year and is described as the largest aluminium smelter in the southern hemisphere. The facility represents one of the most electricity-intensive industrial loads on South Africa’s grid.
The current electricity supply agreement between Eskom and South32 includes pricing arrangements designed to support energy-intensive smelting operations and its expiry in 2031 has triggered the need to define a replacement structure.
The companies said the newly established working group will assess technical, commercial and regulatory considerations associated with a future supply model.
No details have been provided yet on the scale of renewable energy under consideration, procurement mechanisms or potential timelines for implementation.
