South32 Ltd announced on Wednesday it expects to finalise the acquisition of an additional stake in Mozambique-based aluminium smelter Mozal Aluminium in mid-2022 following a delay. The acquisition was originally set to go through in the first quarter of 2022.
The Perth-based diversified miner seeks to buy a 25% share in Mozal aluminium from Mitsubishi Corp subsidiary MCA Metals Holding GmbH for USD250 million. This will take the mining company’s ownership of the smelter up to 72%.
Mozal Aluminium is jointly owned by South32, Mitsubishi, the Industrial Development Corp of South Africa and the Mozambican government.
Mozal Aluminium saleable production decreased 1.1% to 265 000 tons for the financial year ended June 30, from 268 000 tons. Output is expected to increase by 3.0% to a record 273 000 tons in both 2022 and 2023
South32 said there had been a delay to the expected closing date, but did not give the specifics of the delay.
“Should the remaining conditions, including approval from the Competition Regulatory Authority in Mozambique be satisfied, the acquisition is now expected to complete in mid CY22,” the miner said.
Mozal Aluminium saleable production decreased 1.1% to 265 000 tons for the financial year ended June 30, from 268 000 tons. Output is expected to increase by 3.0% to a record 273 000 tons in both 2022 and 2023.
South32’s Hillside aluminium smelter in Richards Bay, KwaZulu-Natal, produces primary aluminium for export markets. To support the development of the downstream aluminium industry in South Africa, a portion of liquid metal is supplied to Isizinda Aluminium which, in turn, supplies aluminium slab to Hulamin, a local company that produces products for the domestic and export markets. Hillside’s capacity of 720 000 tons a year makes it the largest producer of primary aluminium in the southern hemisphere.