South Africa's largest aluminium smelter signs 15-year lease agreement with TNPA

Transnet National Ports Authority (TNPA) has entered into a 15-year lease agreement with South32 Hillside Aluminium, ensuring the continued operations of South Africa's sole primary aluminium producer at the Port of Richards Bay in KwaZulu-Natal. Hillside, the largest aluminium smelter in the southern hemisphere, produces high-quality primary aluminium for both domestic and international markets.

"The Hillside Aluminium 15-year lease agreement is facilitated through a process stipulated in Section 79 (1) of the National Ports Act No 12 of 2005, which empowers TNPA to control land use within the port in alignment with the Port Development Framework Plan (PDFP)," said the company.

TNPA stated that the premises are designated for commercial and industrial use, aligning with strategic development goals. South32 Hillside Aluminium is vital in supporting local downstream manufacturing of aluminium products for domestic and industrial markets. Additionally, the smelter contributes to stabilising the Eskom electricity grid.

Dennis Mqadi, the port manager at the Port of Richards Bay, said, "The Port of Richards Bay is also dedicated to fostering economic activity that creates and retains jobs in our communities. This partnership does not only secure the future of Hillside Aluminium, but also reinforces the Ports Authority's commitment to optimising port infrastructure and capacity."

Calvin Mkhabela, the vice president of operations at South32 South Africa, added, “We are excited about this new chapter in our relationship with TNPA. This lease agreement allows us to continue our operations seamlessly and contribute to the economic vitality of the region."