MINING conglomerate BHP Billiton has reassured the local aluminium industry that ‘minimal changes’ are expected for operational employees of Hillside Aluminium ahead of the impending demerger.
This follows an announcement last week that the Richards Bay smelter would form part of a new global metals and mining company, NewCo, in a move to simplify BHP Billiton Group’s portfolio of assets.
The world’s largest miner told the Zululand Observer on Friday that employees of NewCo, including the staff complement at Hillside Aluminium would ‘retain similar employment conditions’.
‘Contractual obligations and all collective agreements would be honoured,’ said BHP Billiton SA Communication and External Affairs Vice President, Lulu Letlape.
Questioned how the merger would enhance Hillside’s productivity to remain a competitive global player, Letlape said NewCo’s assets would ‘benefit from the focus of a dedicated management team and a corporate structure and systems tailored for their scale’.
‘Many of the assets selected for the new company are among the most competitive in their industries.
‘The JSE listing reflects the importance of South Africa and our confidence in the country as a global centre for the resources industry.
‘The new company would provide South African investors with a significant new investment option,’ Letlape said.
NewCo assets will include South African aluminium, coal and manganese operations as well as alumina, aluminium, coal, manganese and silver assets in Australia, Brazil, Colombia and Mozambique.
The parent company would turn its focus to iron ore, copper, coal, petroleum and potash to unlock shareholder value and improve productivity.
Management
With a third of the company’s assets in South Africa, both the NewCo board and management team would include South Africans.
However, Letlape was unable to confirm whether any members of Hillside’s top management would be co-opted into NewCo’s top brass.
‘Details of the management structure are being finalised and we will keep employees and other stakeholders informed of all developments.’
NewCo will also continue to support beneficiation through its aluminium smelters and will investigate new opportunities to expand its support for local downstream manufacturing.
Letlape said the process to identify a suitable buyer for the cast house at Bayside had not yet been finalised.
He said the envisaged demerger would not affect its local community social investment commitments.
‘NewCo would be committed to making a positive contribution to its host communities and South Africa’s economic transformation and development objectives.’
