By Rhiannon Hoyle
SYDNEY--South32 Ltd. said an agreement has been finalized that will lock in energy supply for its Hillside Aluminium business in South Africa for the next decade.
South Africa's energy regulator has approved the agreement between state power company Eskom Holdings SOC Ltd. and South32's Hillside Aluminium smelter until 2031, under a tariff that is South African Rand-based and linked to the country's producer price index, South32 said Friday.
"This agreement provides power-cost certainty for a further 10 years," said South32 chief executive Graham Kerr.
The agreement replaces contracts which, in some cases, were priced in U.S. dollars and linked to the London Metal Exchange's aluminum contract price, said South32.
Write to Rhiannon Hoyle at [email protected]