South32 Ltd on Tuesday said it has picked up an additional 17% interest in Mozambique-based aluminium smelter Mozal Aluminium from MCA Metals Holding GmbH, a subsidiary of Mitsubishi Corp for $200 million in cash.
South32 now holds a 64% holding in Mozal, which its equity share of aluminium output is now expected to be 281,000 tonnes for its 2022 financial year and 370,000 tonnes for the 2023 financial year.
Near the end of March, the Perth, Australia-based diversified miner said it was looking to purchase a 25% interest in Mozal for $250 million, however the group mentioned a delay to the expected closing date.
Mozal Aluminium is jointly owned by South32, Mitsubishi, the Industrial Development Corp of South Africa and the Mozambican government.
‘Our acquisition of an additional interest in Mozal Aluminium is another major milestone and comes 22 years following the commissioning of the hydro-powered smelter. It further integrates our position along the aluminium value chain with the smelter a major customer of our Worsley Alumina refinery. We are continuing to increase our exposure to metals important to a low carbon future,’ said Chief Executive Officer Stephen Kerr.
Shares in South32 were up 0.9% at 280.50 pence on Tuesday afternoon in London, while its Johannesburg shares were 0.2% higher at R 55.02.
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