BHP in talks to close South African aluminium smelter

JOHANNESBURG, Jan 17 (Reuters) - Global mining group BHP Billiton BHP.AX said on Friday it had started talks with employees at its Bayside aluminium smelter in South Africa about possibly closing the operation, a move that could cost 450 jobs.

The company said in a statement the operation "has been under significant and ongoing financial pressure" and that "BHP Billiton today began a formal consultation with employees in its Aluminium South Africa business on a proposal to cease smelting activities and associated services at Bayside."

BHP BLT.L is consulting with two unions about the proposed closure and job cuts, the National Union of Metalworkers of South Africa (NUMSA) and Solidarity.

Job cuts are a thorny issue in South Africa and the government and ruling ANC, which faces a general election in about three months, has criticised other mining companies such as Anglo American Platinum over proposed lay-offs.

NUMSA, the country's biggest union, is known for its militancy and uncompromising stance in talks with employers. Officials from neither NUMSA nor Solidarity were immediately available for comment.

The closure of the energy-intensive smelter would also have implications for South Africa's strained power grid and could offer some relief as the continent's largest economy struggles to keep the lights on and bring new power plants online.

(Reporting by Ed Stoddard in Johannesburg and Silvia Antonioli in London, editing by David Evans)

((Edward.Stoddard@thomsonreuters.com)(+27 11 775 3160)(Reuters Messaging: edward.stoddard.thomsonreuters.com@reuters.net))

Keywords: BHP SMELTER/SAFRICA