IDC increases stake in Mozal

The Industrial Development Corporation of South Africa (IDC) has increased its stake in Mozal Aluminium, the largest aluminium smelter in sub – Saharan Africa. The investment follows IDC’s decision to exercise its pre-emptive rights to acquire an additional 8.445% shareholding and related rights from MCA Metals Holding GmbH (a Mitsubishi subsidiary). Prior to this transaction, the IDC held 24% equity in Mozal which has since increased to 32.45%.

In 1998, the IDC partnered with BHP Billiton, Mitsubishi and the Mozambican Government to establish Mozal. In 2015, BHP Billion unbundled Mozal into South32. The aluminium smelter has grown to become one of the largest contributors to Mozambique’s export earnings and a key industrial employer.

The investment also rates as one of the IDC’s biggest and flagship projects on the continent. “We are pleased with this development. Mozal has provided good returns on our investment but most important for us has been the socio-economic development impact of this project on the local people. Most important, our investment and partnership with the Mozambican government is in line with one of our core mandates, which speak to sustaining and enhancing regional economic development,” said IDC CEO TP Nchocho.

The smelter, located in Maputo’s Beluluane industrial park, benefits significantly from access to hydroelectric power and key export markets into Europe. That Mozal derives its energy from hydro power qualifies its products to being rated as green aluminium.

“Driving sustainable industrialisation and decarbonisation of energy-intensive industries forms part of the IDC’s strategy. And our investment in Mozal aligns with this strategy,” Nchocho added.