23rd Jul 2021 09:06
(Alliance News) - South32 Ltd on Friday said that the National Energy Regulator of South Africa gave its approval to a long-term deal in which state utility Eskom Holdings SOC Ltd will supply power to the miner's Hillside aluminium smelter in Richards Bay.
In December, Eskom said it submitted a new energy supply agreement to Nersa, which would cover power supply to Hillside for a ten-year period with a rand-based tariff linked to the producer price index.
"We welcome the new agreement which further extends the long-term working relationship between South32 and Eskom. Hillside has been a major Eskom customer for 25 years and this agreement provides power cost certainty for a further ten years, with Eskom receiving a price aligned to long term tariff policy. Eskom also retains the current flexibility to interrupt supply to the smelter to support management of the national electricity grid and minimise load-shedding," said Chief Executive Officer Graham Kerr.
Shares in South32 were up 2.0% at 158.04 pence on Friday in London, while its Johannesburg shares were 1.9% higher at ZAR31.89.
By Dayo Laniyan; [email protected]
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