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

Aluminium Beneficiation Initiative [ABI] A Hulamin – BHP BILLITON Economic Development Initiative B6 Maritzburg Arch 39/45 Chief Albert Luthuli Street, Pietermaritzburg 3201 www.aluminiumbi.co.za Reginald Nyandeni CEO

Content 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

ABI Funders Hulamin Operations BHP Billiton/South 32 • • Head Office and Plant : Pietermaritzburg/Midrand Head Office: JHB [Regional Office] • • Annual Turnover of R8-Billion Aluminium Plants: Richard’s Bay/Mozambique • • Employment: 2,000 Annual Turnover: R12-billion • Employment: 1,500

Hulamin - Overview • 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

Vision 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.

ABI Mission 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 objectives To raise Hulamin - BHP Billiton’ s profile as a contributor to industrialization, job and wealth creation.

Hulamin – Entrepreneurial Support 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.

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 WHY We don’t invest in Human Resources & we don’t manage our own natural Resources.

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 Opportunity/ Idea Risk Resources

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

Technical Support? Assistance with shape design Alloy Selection Fabrication & finishing

“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 Support Model Funding Technical Raw Facilitation Support Material (E.g. Specifications) (E.G Design Dies, Product Qualification (E.g. Hybrid of funding to commercialisation) Models) Business Support and Guidance – within the Competition Act Framework

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”.