Aluminium products manufacturer Hulamin has advised shareholders that it has entered into negotiations with BHP Billiton South Africa over the future of slab supply from the Bayside casthouse, in Richards Bay.

This followed BHP Billiton having initiated a formal consultation with employees of its South Africa-based aluminium business on Thursday over a proposal to cease smelting activities and associated services at Bayside.

The company announced in September 2012 that it would review its Bayside facility after revealing the operation had been under “significant and ongoing financial pressure”.

“BHP Billiton has been in ongoing discussions with its stakeholders to discuss the challenges faced by the business, explore options for the Bayside operation and ensure a sustainable aluminium business for Richards Bay and South Africa.

“To support the ongoing supply to the local customers, the casthouse in the Bayside operation will continue to operate with supply from BHP Billiton’s neighbouring Hillside smelter, while we assess options for its future,” BHP Billiton South Africa communications and external affairs VP Lulu Letlape told Engineering News Online on Thursday.

Combined, the Hillside and Bayside operations had the capacity to produce over 800 000 t of aluminium for export and domestic beneficiation and employed around 1 900 staff members and 700 contractors.

She added that decommissioning and rehabilitation of the remainder of the Bayside site, if undertaken, would provide an additional source of employment for the duration of the project.

“We are focused on mitigating the impact of potential job losses, while ensuring the existence of a sustainable aluminium business in Richards Bay,” Letlape held.

Hulamin sources around one-third of its rolling slab requirements from the Bayside casthouse, and produces the balance in its Camps Drift facility, in Pietermaritzburg.