South32 (ASX:S32) finalises energy supply agreement for Hillside Aliminium

23/07/2021 10:15:00

South32 (ASX:S32) has announced that the National energy regulator of South Africa has approved a long-term energy supply agreement between its Hillside Aluminium smelter and Eskom Holdings, a South African electrical company. The agreement secures the smelters energy supply until 2031, under a tariff that is South African based with a rate of escalation linked to the South Africa producer price index.

South32 is a globally diversified mining and metals company. The company aim to make a difference by developing natural resources and improving peoples lives for generations to come.

South32 chief executive officer said, "hillside has been a major Eskom customer for 25 years and this agreement provides power cost certainty for a further 10 years, with Eskom receiving a price aligned to long-term tariff policy."

With the new tariff agreed, hillside maintains competitively positioned on the global smelter cost curve.  

Shares in South32 (ASX:S32) are trading 1.03 per cent lower at $2.89.