11th Mar 2008 14:45
BHP Billiton PLC11 March 2008 NEWS RELEASE Release Time IMMEDIATEDate 11 March 2008Number 10/08 SOUTH AFRICAN POWER REDUCTION IMPACT ON BHP BILLITON ALUMINIUM On 24 January, the South African national power company, Eskom, determined thatit had insufficient power to meet demand. An emergency 10 per cent reductionin power consumption by many large industrial users, including BHP Billiton, wasmandated. BHP Billiton's contracts with Eskom specify that the power supply toour aluminium smelters can only be interrupted approximately one per cent of thetime per calendar year. Despite this, and respecting the emergency situationfaced by the country, BHP Billiton has reduced its demand by the requested 10per cent. Power reductions were initially achieved by reducing power by approximately 10per cent at all three of our Southern Africa smelters. This operatingmethodology is unsustainable. As we understand that the power reductions arelikely to last for a number of years, we have assessed our options to moreeffectively deal with a longer-term reduction in power. As a result of this assessment we plan to take the bulk of the power reductionat Bayside (100 per cent owned by BHP Billiton) while Hillside and Mozal willcontinue at reduced operating levels to comply with the 10 per cent mandatoryoverall power demand reduction. We have therefore commenced consultations with our employees about a possibleclosure of operations of the B and C potlines at Bayside. Total annualproduction loss will be just over 120,000 tonnes across all three smelters (100%basis), including approximately 92,000 tonnes from Bayside. Also in South Africa, our 60 per cent owned manganese business, Samancor, isoperating at 90 per cent of normal peak power demand although the impact onproduction is small and felt principally in the Metalloys alloy plant. Our coaloperations have been minimally affected and have offered to help Eskom rebuildits coal stocks. Notes: BHP Billiton operates three aluminium smelters in southern Africa. Productionstatistics for these smelters are: BHP Billiton AnnualSmelter Location Ownership Production FY07 Bayside Richards Bay, South Africa 100 per cent 194,000 tonnes Hillside Richards Bay, South Africa 100 per cent 704,000 tonnes Mozal Maputo, Mozambique 47.1 per cent 265,000 tonnes (BHP Billiton share) Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.com Australia United KingdomSamantha Evans, Media Relations Andre Liebenberg, Investor RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4131 Mobile: +44 7920 236 974Email: [email protected] Email: [email protected] Don Carroll, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 2686 Mobile: +61 417 591 938 Tel: +44 20 7802 4195 Mobile: +44 7920 237 246Email: [email protected] Email: [email protected] United States South AfricaTracey Whitehead, Investor & Media Relations Alison GIlbert, Investor RelationsTel: US +1 713 599 6100 or UK +44 20 7802 4031 Tel: SA +27 11 376 2121 or UK +44 20 7802 4183Mobile: +44 7917 648 093 Mobile: +44 7769 936 227Email: [email protected] Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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