Aluminium Beneficiation Initiative [ABI] A Hulamin BHP BILLITON - - PowerPoint PPT Presentation

B6 Maritzburg Arch 39/45 Chief Albert Luthuli Street, Pietermaritzburg 3201

www.aluminiumbi.co.za

Aluminium Beneficiation Initiative [ABI] A Hulamin – BHP BILLITON Economic Development Initiative

Reginald Nyandeni CEO

• 1. Vision
• 2. ABI Mission
• 3. Hulamin and BHP Billiton Entrepreneurial Support

4.Aluminium Industry Overview

• 5. Role of ABI
• 6. Requirements - Prospective Entrepreneurs
• 7. Impact of ABI to Economy
• 8. Sample of Aluminium Downstream Products
• 9. SEFA
• 10. Next Step

Content

ABI Funders

• Head Office and Plant : Pietermaritzburg/Midrand
• Annual Turnover of R8-Billion
• Employment: 2,000
• Head Office: JHB [Regional Office]
• Aluminium Plants: Richard’s Bay/Mozambique
• Annual Turnover: R12-billion
• Employment: 1,500

Hulamin Operations

BHP Billiton/South 32

• Independent rolling mill
• Installed Capacity – 250 000 tons
• In 2014
• Sales 200,000 tons
• Turnover R8 billion
• Sales >40 countries on all continents
• Major product groups
• Can end and tab stock
• 6xxx Plate
• Brazing sheet
• Painted sheet and coil
• Closure sheet
• 1xxx, 3xxx and 5xxx alloys
• Foil
• Extrusion

Hulamin - Overview

To identify and support 100 entrepreneurs in the aluminium fabrication sector and guide them into sustainable businesses within 3 years which will result in these businesses consuming at least 100 tons of aluminium each.

Vision

To identify entrepreneurs [high potential] with innovative ideas and business acumen to establish, grow and sustain successful enterprises. To provide training and support for these entrepreneurs to overcome constraints to achieving their goals. To support a pipeline of entrepreneurs, from selection to goal attainment. To capitalize on the support available from agencies and stakeholders with related

• bjectives

To raise Hulamin - BHP Billiton’s profile as a contributor to industrialization, job and

wealth creation.

ABI Mission

• 1. Since 1996,Hulamin undertook to develop and grow African Enterprises. These have grown from R1 million

in 1996 to R75 Million in 2014 resulting in over 350 permanent jobs [20% of Hulamin

compliment of 2000].

• 2. According to a study conducted by the University of Michigan [USA] and the National Business Incubation

Association [NBIA[ entitled Business Incubation 87% of business incubation graduates stay in

business.

Hulamin – Entrepreneurial Support

BHP Billit illiton – Entrepreneurial l Support

• In 2013, BHP BILLITON established a R50 Million Enterprise and Supplier Development

Centre in Richardsbay

• Over 70 entrepreneurs have gone through a 2-year training programme
• One of the entrepreneurs that went through this programme now employs > 800 people

Aluminium Industry Overview

Economic Landscape

During the last 20 years we have witnessed major economic trends in South Africa:

The economic size of the SA economy has doubled in GDP terms from R1 trillion to R2 trillion. The rapid growth of the black middle class [approaching 4 million households from 350,000 in 1994]; Very slow growth in the industrialization sector - led to job losses in agriculture, mining and manufacturing. The shrinkage of the productive sector has been, ironically, accompanied by the growth of service sector especially finance, real estate, government, transport, communication and distribution. Low Entrepreneurship in SA. Key challenges for Entrepreneurs: - Market Access, lack of business support and Funding

Africa is the richest continent on Earth yet It is the poorest of them All We don’t invest in Human Resources & we don’t manage our own natural Resources. WHY

Role - Aluminium Beneficiation Initiative

Identify Potential Candidates Select/Filter Candidates Train based on accredited modules to address skills gap Transfer relevant skills to candidates Assist candidates to secure resources Develop sustainable funding model for candidates Promote and branding rights Secure necessary Technology and Licences Develop and protect Intellectual Property [IP] Form strategic partnership with key role players within the relevant supply chains Leverage the relationship from Board to strategic partners to unlock potential business opportunities

Requirements – Prospective Entrepreneur

• 1. Entrepreneurial, innovative, self-starter, business acumen,

intelligent/smart, strong selling, people skills, desire to learn, Strong personality, independent, positive attitude

• 2. Types of Entrepreneurs:
• 1. ‘Necessity’ entrepreneurs:

Entrepreneurs starting a business to taking care of themselves and their own families financially.

• 2. ‘Opportunity entrepreneurs’ or ‘longevity’

Entrepreneurs that identifying gaps or opportunities and establish a growing business that creates employment for others and wealth themselves.

Model of Entrepreneurship

People

Resources

Opportunity/ Idea Risk

Manufacturing the jaws of a crocodile

Prices getting lower Rising costs

Impact of ABI to Economy

 Growth in the size of the Aluminium industry resulting in high level skills development and job creation.  Import Replacement.  Hulamin-BHP BILLITON - collaboration will unlock other business opportunities within the upstream-midstream-downstream supply chain that would have a trickle-down effect to the economy.

Im Impact on the Economy

Global Benchmark: I Ton = 3 JOBS [Downstream sector] Therefore overview within the next 9 Years: 2018: 100 tons x 100 Entrepreneurs = 10 000 tons x 3 = 30,000 NEW JOBS 2021: 100 tons x 100 Entrepreneurs = 10,000 tons x3 = 30,000 NEW JOBS 2024: 100 tons x 100 Entrepreneurs = 10,000 tons x3 = 30,000 NEW JOBS TOTAL 30,000 tons 90,000 NEW JOBS

Sample of Downstream Aluminium Products

Small Enterprise Financial Agency [SEFA]

SEFA committed R80 Million towards an Aluminium Fund An additional R20 Million - Hulamin/BHP Billiton Contractors Fund [business growth/expansion, etc.] Disbursement of Funds subject to skills transfer and support Open to All South Africans

From idea to

To commercialisation

Assistance with shape design Alloy Selection Fabrication & finishing

Technical Support?

“Our Extrusions products are found on Mount Everest as components in the highest ladder in the world We helped our [offshore] customer achieve this feat - we can do the same for you in your business/industry”

Recap

Technical Support Raw Material Funding Facilitation Business Support and Guidance – within the Competition Act Framework

Support Model

(E.g. Specifications) (E.G Design Dies, Product Qualification to commercialisation) (E.g. Hybrid of funding Models)

Next xt Step Regis ister your id ideas/interest/enquir iry on the websit ite

www.aluminiumbi.co.z .za

“WE MUST BECOME BIGGER THAN WE HAVE BEEN,

MORE COURAGEOUS, GREATER IN SPIRIT AND LARGER IN OUTLOOK”.