Power rationing curbs BHP aluminum output in Southern Africa

SYDNEY -- BHP Billiton Ltd. said Wednesday power rationing at its aluminum smelters in southern Africa impacted production Tuesday, with further power restrictions expected Wednesday and possibly later in the week. BHP's Hillside and Bayside aluminum smelters in South Africa and the Mozal smelter in Mozambique together produced 1.163 million metric tons of aluminum in the financial year ended June 2006. The exact impact on production from power rationing wasn't immediately clear. South African electricity supplier Eskom has restricted electricity supply before in line with contractual agreements, including during the past month, the spokeswoman said. In addition to tight power supply, Eskom warned of expected severe weather conditions that could damage its electricity pylons and other infrastructure. "We are working closely with Eskom to mitigate the situation following our agreed emergency procedures and we do expect further load shedding to take place tonight and possibly for the rest of the week," a BHP spokeswoman said.