On Wednesday, February 25th, Noel Pillay, the Chief Operating Officer of the diversified mining company South32, stated at the International Aluminium Industry Conference of the South African Aluminium Association held in Johannesburg that aluminium will be extremely important in the future and will support a low-carbon future for the planet.
He pointed out that aluminium is often referred to as the "green" metal of the future, and noted that it is lightweight, highly durable, long-lasting and can be recycled infinitely.
Aluminum provides innovative solutions and competitive advantages for businesses and consumers. At the same time, aluminum remains one of the world's most crucial industrial metals, serving as the foundation for transportation, construction, packaging, consumer goods, and increasingly becoming the basis for global energy transition.
"We are fortunate to have a supportive and involved (South African) government and a power company that understands our business. They are collaborating with us to help transition to a low-carbon future."
Noel Pillay pointed out that the Department of Trade, Industry and Competition of South Africa declared the aluminium industry as a strategic sector. This enabled South32's subsidiary, Hillside Aluminium, to be eligible for Eskom's special electricity rates when South32's power contract was extended to 2031 in 2021.
He said that the company also received strong support from the South African Department of Energy and Electricity.
The knowledge and experience of the government team we were involved with, their understanding of our business, and their recognition of the contribution of our industry to the economy left a deep impression on me.
"We believe that sustainability means supporting current needs without compromising the ability of future generations to meet their own demands."
He pointed out that the company's goal is to reduce its operational emissions by half by the fiscal year 2035, and to achieve net-zero emissions operation by the year 2050.
Hillside accounts for nearly 60% of South32's total global operational emissions, mainly coming from the coal-fired electricity supplied by the state-owned Eskom.
"This is why handling this matter correctly is so crucial for South32."
He also stated that due to the technical limitations of the process, decarbonization at aluminum smelters is a challenging task, and the source of electricity accounts for a significant proportion of the overall operational emissions.
"We have a very good relationship with the electricity supplier Eskom. We should recognize that under the leadership of its CEO Dan Marokane, Eskom has achieved remarkable transformations. Mr. Marokane is also at the forefront of driving Eskom towards a low-carbon utility model. We are collaborating with Eskom to explore ways to support Hillside's low-carbon goals."
This involves making efforts to establish mechanisms for integrating affordable renewable energy into the grid, which can support Hillside and other customers.
In order to meet the supply security requirements of Hillside, the company will continue to rely on the affordable and stable power supply provided by the grid.
He stated that the company will work together with Eskom to continue developing sustainable and reliable solutions, and will be ready to implement them by 2031, when the current contract is signed.
He pointed out that South32 and Hillside have already and are continuing to expand their downstream mineral processing operations in South Africa.
"When we shut down the Bayside smelting plant in Richards Bay, we facilitated the Black Economic Empowerment (BEE) deal for the Bayside Foundry. We transferred the liquid metal from Hillside to the opposite side of the road. This changed the game."
Currently, the company supplies 110,000 tons of products per year to Hulamin and Bingelela Alloys, and helps develop these businesses while maintaining their sustainability. He said the company plans to increase the delivery volume to 240,000 tons per year.
Not having to re-melt the aluminum can save electricity costs, which is a win-win situation for all of us.
Hillside also provided substantial support to Bingelela Alloys, a wheel rim alloy manufacturer mainly owned by black women, which supplies products to global automobile manufacturers.
Currently, the company is exploring a plan to enable local enterprises to produce aluminum rods at the Bayside factory. The goal is to provide a total funding support of 200 million rand for this project. "It is important that everyone in the aluminum value chain continues to shape the future of our industry, strengthen cooperation, promote sustainable development, create new job opportunities in South Africa, and unlock new opportunities."
