Hulamin Buys BHP Billiton’s South African Aluminum CasthouseAndre Janse van Vuuren
Hulamin Ltd. rose in Johannesburg as South Africa’s biggest aluminum-product maker said it’s part of a group that will buy BHP Billiton Ltd.’s casthouse at the Bayside smelter, which had been earmarked for closing.
The company will have a 40 percent stake in Isizinda Aluminium, while Bingelela Capital, a group of black investors, will own the rest, Pietermaritzburg, South Africa-based Hulamin said in a statement today. The manufacturer will operate the casthouse, sourcing more than 10 billion rand ($910 million) of aluminum slab from it in the next five years.
The agreement “will secure our rolling-slab supply from Bayside for the next five years,” Hulamin said. “It will also see the creation of an aluminum hub in Richards Bay.”
The company rose 3.1 percent to 6.96 rand by the close in Johannesburg.
Closing of world aluminum capacity may reach 2 million metric tons in 2014, equivalent to 4 percent of production, Bloomberg Intelligence said in an Oct. 10 report.
BHP will supply the Bayside casthouse from the nearby Hillside smelter. The South African government wants more of the country’s raw materials processed locally by black-owned companies in a system known as beneficiation.