No consultation over Bayside closure, says Numsa

The National Union of Metalworkers of South Africa (Numsa) said on Monday that global mining giant BHP Billiton had not "officially" consulted it about the possible closure of parts of the Bayside aluminium smelter in the port of Richards Bay, in KwaZulu-Natal.

On Friday last week, the world’s largest diversified mining company said it had begun consultations with employees in its Aluminium SA business on the proposed halting of aluminium smelting and associated services at Bayside.

Through Aluminium SA, BHP Billiton runs two aluminium smelters at Richards Bay — Bayside and Hillside.

Hillside was the largest producer of standard aluminium ingots in the southern hemisphere, while Bayside provided value-added products to downstream manufacturers in South Africa.

BHP Billiton also said that to support continuing supply to domestic customers, the cast-house within Bayside would continue to operate with supply from Hillside while the group assessed "options for its future".

It said it would ensure a sustainable aluminium business in both Richards Bay and South Africa.

Numsa has members at both the Bayside and Hillside smelters. But Numsa’s national basic metals and energy sector co-ordinator, Stephen Nhlapo, said on Monday he had not "met with" BHP Billiton. "All I (read) in the newspapers is that the company is proposing to close sections of Bayside," he said.

"There is no proper consultation that has started yet."

He also said there was no "Bayside or Hillside" with regard to union recognition of Aluminium SA, and that because BHP Billiton owned "much more" than just aluminium assets in the country, broader discussions were needed.

But BHP Billiton said that according to its regional office, it was "currently engaged in a pre-consultation phase".

"During this phase, we have engaged employees, local union leaders and national union leaders at their offices in Johannesburg," vice-president of communications and external affairs Lulu Letlape said.

"The next phase will involve formal consultations, which will include official letters and notifications to employees and a formal briefing of the union leaders at national and regional level."

In 2012, the world’s largest diversified mining group announced a review of its Bayside facility, because the operation was "under significant and ongoing financial pressure".

Ms Letlape said last week this was the first time the miner had proposed closing Bayside — it employs about 450 people — but this was widely seen as a setback for the struggling industrial sector in South Africa, and was contrary to the government’s much-vaunted industry beneficiation plan.

Mr Nhlapo also said that while BHP Billiton had told the union last year that the smelter was "not doing well", and that the company and Numsa would "work together", it had also told Numsa that it wanted to put the smelter "on the market".