BHP Plans to Shut SA Smelters

The global mining giant BHP confirmed the rumor that it plans to shut the three smelters in South Africa due to power shortage. BHP said in an statement that it is in talks with workers’ representative, since there are no other ways except closing the smelters. The removing will start on March 25 and be completed within two months. BHP will lose $340 million from the closure at the current aluminum price. Besides, the closure will lead to a further loss of 400 jobs and 500 jobless contractors. The resolute decision was put forward after Eskom said on January 24 it would reduce the power supply to large customers. BHP said earlier that Eskom violated the contract that the annual reduced supply for the smelters will not exceed 1%. However, BHP didn’t insist on their rights unilaterally, while saying ”should respect the current problems South Africa faces”, and reduced the supply by 10% on request. The company’s three smelters in south Africa are the largest power consumer in the region.