Western Australian-based South32 has acquired an additional 16.6 per cent shareholding in Mozambique’s Mozal Aluminium from MCA Metals Holding GmbH.
The final cash consideration of about US$200 million reflects elevated cash and working capital adjustments at acquisition date as the business continues to benefit from strong aluminium prices.
Following completion, the shareholding in Mozal Aluminium will increase to 63.7 per cent, with equity share of aluminium production now expected to be 281 kilotonnes for FY22e and 370 kilotonnes for FY23e.
South32 chief executive officer Graham Kerr said the acquisition marked a major milestone and came 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,” he said.
“We are continuing to increase our exposure to metals important to a low carbon future. Following the completion and the progress with the Alumar aluminium smelter restart in Brazil using 100 per cent renewable power, we remain on track to grow our annualised equity share of green aluminium production by more than 100 per cent before the end of FY23, taking the group’s total aluminium production next year to 1230 kilotonnes.”
South32 produces commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal and manganese from operations in Australia, Southern Africa and South America.
