BHP Billiton sells its Bayside casthouse to Isizinda Aluminium

BHP Billiton, in the process of exiting the aluminium business, has sold of its Bayside casthouse to Isizinda Aluminium ahead of its demerger planned in 2015.

Isizinda Aluminium is owned by two bodies in a 60-40 partnership. Bingelela Capitals, which is a KwaZulu-Natal broad-based black economic empowerment (BBBEE) vehicle, hold 60% of the stakes while Pietermaritzburg-based aluminium producer Hulamin holds the other 40.

The BHP Billion Hillside smelter will be supplying liquid aluminium to the casthouse and from there it will be sold to Hulamin. This is BHP’s first endeavor of selling liquid aluminium according to Graham Kerr, CEO-elect of BHP's proposed demerged vehicle.

"Not only will it secure our rolling slab supply from Bayside for the next five years and beyond but it will also see the creation of an aluminium hub in Richards Bay," said David Austen, acting CEO of Hulamin.

The acquisition still needs the approval of the Competition Commission before it can be finalized, till then, Bayside casthouse will continue to supply slabs to Hulamin on an interim basis.

"The sale of the casthouse reflects our vision to grow the downstream industry in South Africa and to contribute to the transformation of the economy in Richards Bay," BHP's chief executive elect Graham Kerr told reporters in Johannesburg.