Address by President Cyril Ramaphosa at the South32 Hillside Aluminium anniversary
Premier of KwaZulu-Natal, Mr Thami Ntuli,
Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa
The Minister of Trade, Industry and Competition, Mr Parks Tau
Deputy Ministers,
MECs,
Executive Mayor of the King Cetshwayo District Municipality, Cllr Sikhumbuzo Dlamini,
Mayor of the uMhlathuze Local Municipality, Cllr Xolani Ngwezi,
Chief Executive Officer of South32, Mr Graham Kerr,
Chief Operating Officer of South32, Mr Noel Pillay
Representatives of state-owned enterprises,
Members of the diplomatic community,
Representatives of business and organised labour,
Traditional, community and faith leaders,
Distinguished Guests,
Ladies and Gentlemen,
It is my privilege to be here to mark the 30th anniversary of the Hillside Aluminium smelter and to pay tribute to South32 for its sustained commitment to investing in the provincial and national economy.
Since its operations began in 1996, Hillside Aluminium has contributed significantly to our country’s industrial capabilities.
When President Nelson Mandela opened the smelter in April 1996 he said: “The ultimate yardstick by which we must measure our efforts is the extent to which they promote sustained economic growth and development, create jobs and eliminate poverty.”
Today, we can say that Hillside Aluminium has delivered.
It is reported that the smelter currently supports 3,650 direct and indirect jobs, contributes to an estimated 29,000 jobs across the economy, and plays a key role in supplying aluminium to the local downstream industry.
Hillside Aluminium is not only a smelter; it is a producer of skills.
It is known for its highly skilled artisans, rigorous engineering, tight process control and an uncompromising safety culture.
The apprenticeships, bursaries and learnerships provided by Hillside Aluminium are more than corporate programmes.
They have strengthened South Africa’s national skills pipeline. They prepare young people for the high-demand jobs of future industries, from advanced manufacturing to the green economy.
Hillside Aluminum has shown that its roots are firmly planted in the community through sustained community and social investment, strengthening education, economic participation, health and well-being.
These programmes have reinforced the principle that large industrial operations should create shared value with host communities.
This is seen through the smelter’s community and social investment programmes.
We commend the company’s support for health services at the Ngwelezana Hospital through the establishment of a dedicated paediatric burns unit.
There is also its support for water projects in the King Cetshwayo District, which has
helped connect over 1,200 households to safe, clean water, and the school refurbishment project at Aquadene Secondary School.
All of these projects make a real and lasting difference in the lives of thousands of people in this area.
South32 demonstrated its confidence in the South African economy at this year’s South Africa Investment Conference, where it pledged R3.9 billion to upgrade rail infrastructure in KwaZulu-Natal and the Northern Cape.
It has been a difficult operating environment for smelters in recent years, with many having been forced to close due to rising costs and adverse market conditions.
We commend Eskom for its constructive and proactive efforts to work with the industry to address rising electricity costs.
We welcome the discussions between Eskom and South32 about a long-term electricity solution for the Hillside Aluminium when the current contract ends in 2031.
We are encouraged by the commitment by South32 and Eskom to develop an energy solution that supports the smelter’s competitiveness and brings renewable energy into the national grid.
Smelters are anchor investments that catalyse downstream manufacturing clusters like fabrication, transport, construction inputs, packaging and components for the renewable energy supply chain.
They enable the development of a wide array of supporting industries and jobs.
Hillside Aluminium’s export footprint is a practical demonstration that South African industries can meet demanding global standards and hold their own in world markets.
Hillside Aluminium’s participation in global market systems, such as being listed on the London Metals Exchange and meeting certificate requirements, underscores the confidence in South Africa’s quality and traceability.
As we look to the future, our planning must be informed by the realities of climate change.
Customers and markets are increasingly rewarding lower carbon, responsibly produced materials and more circular manufacturing.
Our industry needs to respond accordingly if we are to sustain our competitiveness in increasingly demanding international markets.
Increasing the competitiveness of South African industries will continue to depend on reliable enabling infrastructure in energy and logistics.
That calls for ongoing collaboration between industry and key public partners to support investment and jobs.
I am happy that South32 recognises the importance of strong, practical working relationships with Eskom and Transnet to sustain production, exports and investment confidence.
Transnet has turned the corner and has moved from decline to recovery, and from planning to implementation.
Investment, reform and delivery are now firmly underway in rail and port infrastructure.
There is clear progress in our quest to restore rail volumes, implement structural reform and crowd in private sector investment.
South Africa is transitioning to the early stages of a multi-operator rail system, with 11 private train operating companies having been granted access to freight rail lines.
We have also seen tangible improvements on the iron ore and coal export corridors, including improved network reliability and reduced operational disruptions.
This will enable companies like South32 to plan ahead.
The momentum of the structural reform agenda we embarked upon in 2018 continues to grow and by a number of indicators our economy is steadily recovering.
As I said in the State of the Nation Address earlier this year, our foremost priority is to deliver inclusive growth and job creation.
Sustained domestic investment, including the investment by South32, is essential to advance this priority.
Through a combination of structural reform and infrastructure development, notably in key sectors such as logistics and water, we remain committed to creating an enabling business environment that supports such investments.
Once again, I congratulate South32 on reaching this milestone.
Your longevity is a story of South Africans choosing excellence, shift after shift and year after year.
You are demonstrating what can be achieved when long-term investment, operational excellence and partnership between industry, labour, communities and the state come together.
We wish Hillside Aluminium many more years of safe production, shared prosperity and success.
I thank you.
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