South32 (ASX:S32) ups Mozal stake for US$250m

South32 (ASX:S32) are set to creep up their stake in Mozal Aluminium in Mozambique by 25 per cent to 72.1 per cent for US$250 million. The miner will deplete their US$553 million bank balance as of August to settle the deal.

The acquisition will boost its annualised equity share of aluminium production by 15 per cent or 145 kilotonnes to 1,138 kilotonnes.

Chief executive Graham Kerr said “we are pleased to be able to increase our shareholding on value accretive terms, with a transaction that we expect will deliver a strong return for our shareholders. We are also working with our partner at Alumar in Brazil to investigate a restart of the smelter using renewable energy. Both investments are consistent with our strategy to increase our exposure to the base metals required for the critical transition to a low carbon future.”

Shares in South32 (ASX:S32) are trading 3 per cent higher at $3.49.

Image from: https://www.south32.net/our-business/southern-africa/mozal-aluminium