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BIL
BIBLT
BIL - BHP Billiton Plc - South African Power Reduction impact on BHP Billiton
aluminium
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
SOUTH AFRICAN POWER REDUCTION IMPACT ON BHP BILLITON ALUMINIUM
On 24 January, the South African national power company, Eskom, determined that
it had insufficient power to meet demand. An emergency 10 per cent reduction
in power consumption by many large industrial users, including BHP Billiton, was
mandated. BHP Billiton`s contracts with Eskom specify that the power supply to
our aluminium smelters can only be interrupted approximately one per cent of the
time per calendar year. Despite this, and respecting the emergency situation
faced by the country, BHP Billiton has reduced its demand by the requested 10
per cent.
Power reductions were initially achieved by reducing power by approximately 10
per cent at all three of our Southern Africa smelters. This operating
methodology is unsustainable. As we understand that the power reductions are
likely to last for a number of years, we have assessed our options to more
effectively deal with a longer-term reduction in power.
As a result of this assessment we plan to take the bulk of the power reduction
at Bayside (100 per cent owned by BHP Billiton) while Hillside and Mozal will
continue at reduced operating levels to comply with the 10 per cent mandatory
overall power demand reduction.
We have therefore commenced consultations with our employees about a possible
closure of operations of the B and C potlines at Bayside. Total annual
production 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, is
operating at 90 per cent of normal peak power demand although the impact on
production is small and felt principally in the Metalloys alloy plant. Our coal
operations have been minimally affected and have offered to help Eskom rebuild
its coal stocks.
Notes:
BHP Billiton operates three aluminium smelters in southern Africa. Production
statistics for these smelters are:
BHP Billiton Annual
Smelter 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 Kingdom
Samantha Evans, Media Relations Andre Liebenberg, Investor Relations
Tel: +61 3 9609 2898 Tel: +44 20 7802 4131
Mobile: +61 400 693 915 Mobile: +44 7920 236 974
Email: Samantha.Evans@bhpbilliton.com Email:Andre.Liebenberg@bhpbilliton.com
Don Carroll, Investor Relations Illtud Harri, Media Relations
Tel: +61 3 9609 2686 Tel: +44 20 7802 4195
Mobile: +61 417 591 938 Mobile: +44 7920 237 246
Email: Don.A.Carroll@bhpbilliton.com Email: Illtud.Harri@bhpbilliton.com
South Africa
United States Alison GIlbert, Investor Relations
Tracey Whitehead, Investor & Media Tel: SA +27 11 376 2121 or
Relations UK +44 20 7802 4183
Tel: US +1 713 599 6100 or Mobile: +44 7769 936 227
UK +44 20 7802 4031 Email: Alison.Gilbert@bhpbilliton.com
Mobile: +44 7917 648 093
Email:Tracey.Whitehead@bhpbilliton.com
Date: 11/03/2008 17:26:46 Produced by the JSE SENS Department.
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