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'Power cuts killed new smelter'

Aug 18 2008 22:29

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London - Continuing power constraints in South Africa mean no new aluminum smelting capacity is likely there for at least a decade, BHP Billiton chief executive Marius Kloppers said Monday.

"I cannot see any scenario where in the foreseeable future there is going to be any smelter construction in southern Africa," Kloppers told reporters.

Power shortages in South Africa have forced miners to reduce production.

BHP Billiton, the main smelter operating in South Africa, has had electricity supply cut to 90% of normal capacity, while Rio Tinto has put on hold its long-planned $3bn Coega aluminum smelter.

"There is going to be no (additional) power for a long time," Kloppers said.

"That means that on our existing smelters...capacity curtailment is probably going to continue," he added.

Kloppers said he didn't expect any incremental smelting capacity expansion for at least the next decade.

- Dow Jones

 
 
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