The Australian multinational has made a strong commitment to diversify its investment in Africa. South32 announced last September 30 its intention to exercise its right to purchase an additional 25% stake in Mozal Aluminium.
The Mozal company, which started production in 2000, is located in the Beluluane Industrial Park, 20 kilometres west of the city of Maputo in the south of the country.
South32 bought the additional stake in the aluminum smelter for $250 million from Mitsubishi Corp Metals Holding, bringing its stake in the smelter to just over 72%. Now with this announcement the Australian multinational intends to increase its annual aluminum production by 15% more.
“The smelter benefits from access to hydroelectric power and key export markets in Europe,” said South32 chief executive Graham Kerr, adding further that the company acquired the stake in cash.
Mozal Aluminium also counts the Industrial Development Corporation of South Africa and the government of Mozambique as shareholders. Its production started in 2000 with an installed capacity of 250 thousand tons/year; later, in 2003 a second line of cells was started, increasing its capacity to 580 thousand tons/year, becoming the second largest aluminum producer in Africa.
