HULAMIN SECURES LONG TERM SLAB SUPPLY FROM BAYSIDE
Shareholders are advised that Isizinda Aluminium (“Isizinda”) today announced the
acquisition (“the acquisition”) of the Bayside casthouse in Richards Bay, KwaZulu Natal from
BHP Billiton The effective date is expected to be 1 April 2015, subject to Competition
Isizinda (meaning Hub in isiZulu) is a strategic partnership between Bingelela Capital and
Hulamin. Bingelela Capital, a KZN based BEE group, owns a majority 60% stake in Isizinda.
Hulamin holds 40% and will also provide managerial, technical and administrative support to
Isizinda in terms of a strategic operator agreement.
Isizinda has concluded a groundbreaking five year metal supply agreement with BHP Billiton
that will see liquid metal supplied by the nearby Hillside smelter directly to the Bayside
casthouse. Hulamin in turn, has concluded a matching slab offtake agreement with Isizinda,
with an estimated value of more than R10 billion over the five year period.
Isizinda is evaluating further phases of development to expand the Bayside casthouse to
support the anticipated growth of the downstream aluminium industry in South Africa.
David Austin, Acting CEO of Hulamin commented:
“We are really excited about the transaction which was only made possible by all parties’
close co-operation. Not only will it secure our rolling slab supply from Bayside for the next
five years and beyond but it will also see the creation of an aluminium hub in Richards Bay.
This hub has the potential to supply liquid metal and/or castings to other manufacturers in
the South African aluminium industry thereby stimulating growth in downstream
BHP Billiton will continue to operate the Bayside casthouse and to supply slab to Hulamin on
an interim basis, until Competition Commission approval is granted and the acquisition is
Johannes van Niekerk T +27 82 921 9110
24 November 2014
RAND MERCHANT BANK (A division of FirstRand Bank Limited)