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BHP Group Limited — Capital/Financing Update 2008
Mar 11, 2008
14787_rns_2008-03-11_562e9324-9f27-4351-adeb-c9645bab4a9e.pdf
Capital/Financing Update
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NEWS RELEASE
Release Time IMMEDIATE Date 11 March 2008 Number 10/08
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:
| SmelterBaysideHillsideMozal | LocationRichards Bay, South AfricaRichards Bay, South AfricaMaputo, Mozambique | BHP BillitonOwnership100 per cent100 per cent47.1 per cent | AnnualProduction FY07194,000 tonnes704,000 tonnes265,000 tonnes (BHP Billiton share) |
|---|
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209 Registered in Australia Registered in England and Wales Registered Office: 180 Lonsdale Street Neathouse Place Melbourne Victoria 3000 Australia London SW1V 1BH United Kingdom Tel +61 1300 55 4757 Fax +61 3 9609 3015 Tel +44 20 7802 4000 Fax +44 20 7802 4111
A member of the BHP Billiton group which is headquartered in Australia
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Further information on BHP Billiton can be found on our Internet site: www.bhpbilliton.com
Australia
Samantha Evans, Media Relations Tel: +61 3 9609 2898 Mobile: +61 400 693 915 Email: [email protected]
Don Carroll, Investor Relations Tel: +61 3 9609 2686 Mobile: +61 417 591 938 Email: [email protected]
United States
Tracey Whitehead, Investor & Media Relations Tel: US +1 713 599 6100 or UK +44 20 7802 4031 Mobile: +44 7917 648 093 Email: [email protected]
United Kingdom
Andre Liebenberg, Investor Relations Tel: +44 20 7802 4131 Mobile: +44 7920 236 974 Email: [email protected]
Illtud Harri, Media Relations Tel: +44 20 7802 4195 Mobile: +44 7920 237 246 Email: [email protected]
South Africa
Alison GIlbert, Investor Relations Tel: SA +27 11 376 2121 or UK +44 20 7802 4183 Mobile: +44 7769 936 227 Email: [email protected]