RICHARDS BAY, May 10, 2026, 23:05 (SAST)
South32 Ltd is pushing to lock in a fresh electricity deal for its Hillside Aluminium smelter by 2029, looking to sidestep the kind of power-price clash that shuttered its Mozal site in Mozambique. At the 30th anniversary celebration for Hillside, Chief Executive Graham Kerr told reporters the Richards Bay operation could keep going “20-30 years” if a competitive power contract materializes, according to Business Day. Business Day
Timing’s key here. Hillside’s cut-rate Eskom contract wraps up in 2031, and smelters can’t run without big, reliable power—cheap juice is non-negotiable if you want to stay in the game. On March 15, South32 shuttered Mozal, moving it to care and maintenance after it couldn’t lock in enough low-cost electricity, according to Reuters.
Hillside stands out in South32’s line-up. According to South African officials, the smelter accounts for 3,650 jobs directly and indirectly, and is linked to around 29,000 jobs economy-wide. It also feeds the local aluminium value chain, supplying companies that process the primary metal into finished goods.
Eskom and South32 have launched a joint working group to explore renewable energy options for Hillside, supported by “firming capacity” — extra backup to cover dips in wind or solar generation. South32 Chief Operating Officer Noel Pillay put the target at a “viable, low-carbon energy solution” from 2031. Eskom CEO Dan Marokane said the discussions aim to boost both industrial competitiveness and cut grid emissions. Eskom
President Cyril Ramaphosa took the stage at the anniversary, positioning the plant as a key piece of industrial stability. He praised South32’s R3.9 billion commitment for rail upgrades across KwaZulu-Natal and the Northern Cape, and underscored that reliable energy and logistics are still at the heart of South Africa’s industrial edge.
Reuters reported that Hillside, which started up in 1996, ranks as the southern hemisphere’s biggest aluminium smelter and can produce 720,000 metric tons a year. It runs nonstop, so the electricity tariff isn’t just another line item — it’s central to the business.
South32’s situation is echoing across the sector. Back in March, Rio Tinto secured a government-backed deal to keep its Boyne aluminium smelter in Queensland running past the end of its 2029 power contract. Alcoa, for its part, said in February it was exploring sales of shuttered or idled assets to data-centre operators, as power-tied industrial land continued to climb in value.
The risk: talks could drag on longer than anticipated, or the deal might hit a wall with regulators or pricing. Eskom and South32 both maintain that anything beyond 2031 depends on regulatory approvals. The Mozal example hangs over the process—after protracted negotiations, the plant was mothballed, meaning production halted but the facility stayed ready for a possible restart.
South32’s pitch right now is straightforward: Hillside connects electricity, employment, and domestic aluminium output. But the sticking point is the cost—who shoulders it, and how much? That’s what will determine if Hillside keeps its status as a South African industry flagship, or slips into cautionary territory for the smelter business.
