South32 and Eskom are advancing discussions on a new, long-term electricity solution for the Hillside Aluminium Smelter in KwaZulu-Natal, targeted to commence in 2031, subject to compliance with all regulatory requirements.
Both organisations have reaffirmed their shared ambition to develop and deliver a long-term energy solution that supports Hillside’s competitiveness, contributes to regional economic stability and industrial growth, and aligns with 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, 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.
This marks an important step towards supporting the future of one of Southern Africa’s most important industrial businesses. Hillside supports a total of 3,650 direct and indirect jobs, contributes to an estimated 29,000 jobs across the economy, and plays a key role in supplying aluminium to the local downstream industry.
South32 Chief Operating Officer, Noel Pillay, said: “As Hillside celebrates 30 years of operation this year, we are collaborating with the Government of South Africa and Eskom to secure its future 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.”
Eskom Group Chief Executive, Dan Marokane, said: “Eskom values the longstanding partnership with South32 and the important role Hillside Aluminium plays in South Africa’s industrial economy. Through this joint process, we are working to develop a long-term energy solution that supports industrial competitiveness while advancing South Africa’s transition to a lower-carbon electricity system.
“By exploring innovative mechanisms to integrate renewable energy into the grid with appropriate firming solutions, this collaboration has the potential not only to secure the future of Hillside, but also to contribute to strengthening the resilience and sustainability of the national electricity system for the benefit of all South Africans.”
About South32
Our purpose is to make a difference by developing natural resources, improving people’s lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. We produce minerals and metals critical to the world’s energy transition from operations across the Americas, Australia and Southern Africa and we are discovering and responsibly developing our next generation of mines. We aspire to leave a positive legacy and build meaningful relationships with our partners and communities to create brighter futures together.
About Eskom Holdings SOC Ltd
Eskom Holdings SOC Ltd is a state-owned corporation (SOC) and South Africa’s primary electricity utility, entirely owned by the South African government. Eskom operates across the full electricity value chain—generation, transmission, and distribution—supplying over 86% of South Africa’s energy needs and approximately 20% of the electricity produced on the African continent. Governed by a dual mandate to ensure financial sustainability while driving socio-economic growth, Eskom is committed to a responsible transition toward a lower-carbon future. The entity maintains a vast national network of approximately 33,000km, balancing supply and demand in real-time to power the nation’s economy and participate in the Southern African Development Community (SADC) electricity market. Please visit Eskom Holdings SOC Ltd for more information.
About Eskom and Electricity – Energy Transition: Aims to transition towards a more sustainable energy mix by 2030.
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