The Industrial Development Corporation of South Africa (IDC) has increased its stake in Mozal Aluminium, in Mozambique, the largest aluminium smelter in sub-Saharan Africa.
The investment follows the IDC’s decision to exercise its pre-emptive rights to acquire an additional 8.445% shareholding and related rights, from MCA Metals Holding– a Mitsubishi subsidiary. Prior to this deal the IDC held 24% equity in Mozal, which has since increased to 32.45%
The investment in the flagship project is one of the IDC’s biggest on the continent.
“We are pleased with this development. Mozal has provided good returns on our investment but most important for us has been the socio-economic development impact of this project on the local people,” IDC CEO TP Nchocho said in a statement.
In 1998, the IDC partnered with BHP Billiton, Mitsubishi and the Mozambican government to establish Mozal. In 2015, BHP Billiton unbundled Mozal into South32. The smelter is one of the largest contributors to Mozambique’s export earnings.
Nchocho said their investment and partnership with the Mozambican government was in line with one of their core mandates, to sustain and enhance regional economic development.
The smelter, located in Maputo’s Beluluane industrial park, benefits from access to hydroelectric power and key export markets in Europe. It derives its energy from hydro power, which qualifies its products to being rated as green aluminium.
“Driving sustainable industrialisation and decarbonisation of energy-intensive industries forms part of the IDC’s strategy. And our investment in Mozal aligns with this strategy,” Nchocho said.
BUSINESS REPORT