South32 relines idle pots for smooth start-up
Hillside aluminium smelter prepping for better days ahead
SOUTH32 has given the assurance that the idled equipment will be good as new for a flawless start-up the moment market conditions recover.
The company took 22 pots offline at its Richards Bay Hillside aluminium smelter in September last year owing to depressed aluminium prices and unreliable power supply.
The group said it has invested in relining all the pots to return to full production without any hiccups when the market recovers.
Addressing a global media contingent on 25 August, South32 CEO Graham Kerr said the massive 21% reduction in the average realised price of their commodities has resulted in a reduced revenue of US$1.6-billion (more than R23-billion).
‘While volatile macro-economic conditions posed a significant challenge to the industry, strict application of this strategy and an overarching focus on cash flow, value and investment returns delivered strong results in the areas that we control,’ said Kerr.
‘High rates of current efficiency have been achieved at our African aluminium smelters.
‘The impact of electricity load-shedding events was lower than anticipated in the 2016 fiscal year and production will continue to be influenced by the duration and regularity of these outages.
Despite these challenges, Kerr remains positive about the company’s future.
‘We will continue to unlock the potential of our portfolio, identify opportunities and pursue investments where we see value, but will not compromise our strong balance sheet and investment grade credit rating.
‘Looking to the 2017 financial year, we have maintained production guidance for the majority of our upstream operations and will stretch performance to meet cost targets.
‘Our functions are lean, with corporate costs now half the level envisaged at the time of listing.
‘Twelve months on, South32 is a much stronger company with significantly lower costs and a balance sheet that provides flexibility.
‘Against this backdrop, our Board resolved to pay an inaugural dividend of 1 cent (US) per share.’
HAVE YOUR SAY
Like our Facebook page and follow us on Twitter.
For news straight to your phone invite us:
WhatsApp – 072 069 4169
Instagram – zululand_observer
