South Africa’s Hillside aluminium smelter eyes renewable power under Eskom-South32 plan

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Eskom and South32 have moved forward with a long-term renewable energy plan for the Hillside Aluminium smelter in KwaZulu-Natal, to keep it running past 2031. 

The proposed solution, currently under discussion, is expected to begin when the smelter’s existing electricity contract expires in 2031, subject to regulatory approvals. Both companies have formed a joint working group to explore ways to integrate competitively priced renewable energy into the national grid, supported by firming capacity within existing frameworks.

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The initiative is intended to enhance the competitiveness of the Hillside operation, support regional economic stability, and align with South Africa’s decarbonisation goals. The smelter plays a key role in the domestic aluminium value chain and supports around 3,650 direct and indirect jobs, with a wider economic impact of nearly 29,000 jobs.

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Noel Pillay, Chief Operating Officer of South32, said, “We have made a solid start. It is important we continue this momentum, working towards a viable, low-carbon energy solution for Hillside from 2031, when the current electricity contract expires.” 

South32 said the collaboration is critical to ensuring long-term sustainability, particularly as the facility marks 30 years of operations. Eskom also highlighted the importance of the partnership in strengthening industrial resilience while transitioning to a lower-carbon energy system.

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According to Eskom Group Chief Executive, Dan Marokane, “By exploring innovative mechanisms to integrate renewable energy into the grid with appropriate firming solutions, this collaboration has the potential not only to secure the future of Hillside, but also to contribute to strengthening the resilience and sustainability of the national electricity system for the benefit of all South Africans.” 

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Hillside is the largest aluminium smelter in the Southern Hemisphere, producing about 720,000 tonnes annually. It is also South Africa’s single largest electricity consumer, using approximately 10.3 TWh per year, or about 5 per cent of Eskom’s total sales.

The development comes amid ongoing scrutiny over Hillside’s preferential electricity tariffs, which have historically been linked to London Metal Exchange prices and exchange rates.