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(Alliance News) - South32 Ltd on Thursday announced the acquisition of a further 25% of Mozal Aluminium for USD250 million.
The Perth-based mining and metals company said it exercised its right to acquire up to an additional 25% shareholding in Mozal Aluminium from Mitsubishi Corp subsidiary MCA Metals Holding GmbH.
This takes the mining company's ownership of the smelter up to 72%.
Mozal Aluminium is an aluminium smelter located near Maputo, Mozambique. The operation is jointly owned by South32, Mitsubishi, the Industrial Development Corporation of South Africa and the Mozambican government.
Chief Executive Graham Kerr said: "We are pleased to be able to increase our shareholding on value accretive terms, with a transaction that we expect will deliver a strong return for our shareholders. We are also working with our partner at Alumar in Brazil to investigate a restart of the smelter using renewable energy. Both investments are consistent with our strategy to increase our exposure to the base metals required for the critical transition to a low carbon future."
The acquisition will be funded from cash on hand.
South32 shares were up 1.9% to ZAR38.22 each in Johannesburg on Thursday morning, and were up 2.9% to 187.49 pence in London. The stock closed 4.1% higher in Sydney.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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