South32 has agreed to sell its aluminium operations, including the Hillside smelter, to Alcoa in a deal valued at up to $5.6 billion. The transaction was announced on Wednesday and excludes the Mozal smelter in Mozambique.
The deal involves the Hillside Aluminium smelter in Richards Bay, which opened in 1996 as South Africa's largest private investment at the time. Alcoa stated that the acquisition adds high-quality, low-cost assets and strengthens its global operations.
Hillside benefits from a power pricing arrangement with Eskom that provides about a 50 percent discount and runs until 2031. President Cyril Ramaphosa welcomed ongoing talks for a long-term electricity solution during a May event marking the smelter's 30th anniversary.
The transaction requires shareholder and regulatory approval and is expected to close in the first half of 2027. South32 is divesting its aluminium assets globally to focus on higher-margin operations.