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South32 Ltd announced on Wednesday it expects to finalise the acquisition of an additional stake in Mozambique-based aluminium smelter Mozal Aluminium in mid-2022 following a delay.
The acquisition was originally set to go through in the first quarter of 2022.
The Perth-based diversified miner seeks to buy a 25% share in Mozal aluminium from Mitsubishi Corp subsidiary MCA Metals Holding GmbH for $250 million. This will take the mining company's ownership of the smelter up to 72%.
Mozal Aluminium is jointly owned by South32, Mitsubishi, the Industrial Development Corp of South Africa and the Mozambican government.
South32 said there had been a delay to the expected closing date, but did not give the specifics of the delay.
‘Should the remaining conditions, including approval from the Competition Regulatory Authority in Mozambique be satisfied, the acquisition is now expected to complete in mid CY22,’ the miner said.
Mozal Aluminium saleable production decreased 1.1% to 265,000 tonnes for the financial year ended June 30, from 268,000 tonnes. Output is expected to increase by 3.0% to a record 273,000 tonnes in both 2022 and 2023.
Shares in South32 rose by 0.3% to 288.00 pence in London early Wednesday. They were up 0.7% to R 54.86 in Johannesburg.
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