09 APRIL 2014www.miningmx.com
BHP Billition resumes negotiation on an aluminum contract with Eskom
Edited by : AL CIRCLE
1 min read
BHP Billiton has resumed their negotiations on an aluminum contract with Eskom in Richard Bay after a few days just before National Energy Regulator (Nersa) was about to start their hearing process which would have resulted in the contract cancellation.
According to reports, BHP Billiton wants to do away with all its aluminium smelters and other interests in Northern Cape. They plan to list themselves completely as a separate company in London, Johannesburg and Melbourne. Thembani Bukula, the board member in charge of electricity at Nersa has requested suspension of injury into controversial aluminium contracts.
According to this contract, 7% of the power of the country goes to aluminum smelters. But the power is bought it half the price of the generation cost of Eskom. The public is subsidizing the smelters.
Over the last few years, investigation has been delayed due to numerous objections by the company against publication of a document related to the matter.
However, it was decided by Nersa’s board formally that the discussion document should be published by the end of March. "They have just asked us to suspend the process again because they have resumed negotiations with Eskom on the contracts," Bukula told Sake.
According to reports, BHP Billiton wants to do away with all its aluminium smelters and other interests in Northern Cape. They plan to list themselves completely as a separate company in London, Johannesburg and Melbourne. Thembani Bukula, the board member in charge of electricity at Nersa has requested suspension of injury into controversial aluminium contracts.
According to this contract, 7% of the power of the country goes to aluminum smelters. But the power is bought it half the price of the generation cost of Eskom. The public is subsidizing the smelters.
Over the last few years, investigation has been delayed due to numerous objections by the company against publication of a document related to the matter.
However, it was decided by Nersa’s board formally that the discussion document should be published by the end of March. "They have just asked us to suspend the process again because they have resumed negotiations with Eskom on the contracts," Bukula told Sake.
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