South32 brings new latitude for Hillside smelter future
Global metals and mining company set to give new life to Hillside.
FAR from being under threat of closure, the Hillside Smelter is poised to be part of a new regional initiative that promises more profit, the potential of more downstream jobs and continued community assistance.
Speaking at an interactive community stakeholders meeting at the Blue Marlin Guesthouse on Wednesday evening, BHP Billiton Aluminium SA Asset President, Noel Pillay said an atmosphere of positivity prevailed on the brink of the demerging of the existing business.
Subject to the necessary third party approvals, a final BHP Billiton Board decision and the shareholder vote expected in May, Hillside will become part of ‘South32’ – a new global metals and mining company.
The name derives from the fact that the southern hemisphere assets that comprise South32 lie approximately on the 32nd parallel.
‘After BHP and Billiton merged (in 2001), some larger businesses grew exponentially, with the result that the smaller businesses – including aluminium – were not able to compete for capital,’ said Pillay.
While core BHP Billiton post-demerger companies will comprise the iron ore, petroleum & potash, copper and coal portfolios, South32 will embrace companies within the aluminium, manganese, silver, nickel and coal sectors.
‘South32 is a business born in the southern hemisphere, with a reach and ambition that circles the globe,’ said Pillay.
‘Our two regions, Africa and Australia, are linked by a common spirit and strategy.
‘While much smaller than BHP Billiton, together our businesses are the size of other large blue chip mining houses.
‘By restructuring and running them differently as a regional model, we can take out costs.
‘There is huge growth potential, with increasing demand for our commodities.
‘If we (Hillside) are making money today under tough market conditions, we can make even more as South32.
‘Being autonomous, with a head office that sits in South Africa, augers well for better stakeholder engagement since having a regional presence also brings us closer to national decision makers, including government.’
