Australian diversified miner South32 Ltd S32.AX said on Thursday it exercised its right to buy an additional 25% stake in Mozambique-based Mozal Aluminium, a move that will increase its annual output from the smelter by 15%.
South32 bought the additional stake in the aluminium smelter for $250 million from Mitsubishi Corp Metals Holding, raising its holding in the smelter to just over 72%.
Mozal Aluminium also counts South Africa’s Industrial Development Corp and the Mozambique government as its shareholders.
“The smelter benefits from access to hydroelectric power and key export markets into Europe,” South32 Chief Executive Officer Graham Kerr said, adding the company made the stake acquisition in cash.
