South32 announces delay in Mozal’s additional stake possession from Mitsubishi

South32, hailing from Perth, Australia is a mining and metals company that declared on the 30^th of March, that there has been a delay in their possession of additional shares in Mozal aluminium from MCA Metals Holding GmbH (Mitsubishi).

However, once the approval of the Competition Regulatory Board in Mozambique is availed, the acquisition would not take more than mid-2022 while previously it was anticipated to be over by March 2022. The group was not very keen on sharing any more details. 

The agreement incorporates some valid points, while one of them is, that the companies are going to share the profit it makes with Mitsubishi from the period of 1^st July 2021until the transaction is accomplished.

South32, Mitsubishi, the Industrial Development Corp of South Africa and the Mozambique government are the joint owners of Mozal Aluminium.

MCA Metals Holding GmbH a subsidiary of Mitsubishi is about to sell a 25% share of Mozal aluminium to South32 for US$250 million, which will upgrade South32’s ownership to 72%.

The exportable or saleable production by Mozal aluminium has plunged by 1.1% from 268,000 tonnes to 265,000 tonnes if calculated till the Q2 2021.