South Africa: Industrial Development Corporation expands shareholding in Mozal Aluminium to 32.45%

According to a report on Monday, October 31, South Africa’s Industrial Development Corporation (IDC), a national development finance institution, has expanded its shareholding in Mozambique’s Mozal Aluminium to 32.45 per cent. Earlier, IDC had a 24 per cent share in the hydropowered smelter, located 20 Km west of Maputo.

Mozal dates back to 1998, formed by a partnership between IDC, BHP Billiton, now South32, Mitsubishi and the Mozambican government. The operation started in late 2000 and soon after underwent expansion plans to double its capacity.

As the demand for aluminium is at an optimum level to achieve a low-carbon future, metal companies are increasingly attracting investors’ interest. Last year, South32 acquired an additional 8.445 per cent share in Mozal, which increased its shareholding to 63.7 per cent.

Mozal has turned into a significant source of export earnings for Mozambique and is the biggest industrial employer. IDC CEO TP Nchocho stated in a release to Mining Weekly, “most important for us has been the socio-economic development impact of this project on the local people.”

He further said that sustainable industrialisation and decarbonisation is IDC's core objective. Its investment in Mozal fits the goal. 

To support the development of downstream aluminium industry in Mozambique, Mozal supplies a portion of liquid metal to Midal Cables, a local company that sells products in the domestic and export markets.