South32 operates Mozal Aluminum in Mozambique which is currently on care and maintenance. The smelter is not part of South32'a plans to sell its aluminium interests to US group Alcoa.
South32 has announced the sale of its aluminium assets, including the Hillside Smelter in Richards Bay, to US-based Alcoa Corporation for up to $5.6bn, aiming to reposition itself as a leading base metals company.
The deal also marks Alcoa's first entry into the South Africa market. South32, the JSE and Australia listed global resources group which owns the Hillside smelter and the Mozal aluminium smelter in Mozambique, which is currently on care and maintenance, said Wednesday that Alcoa will also assume related rehabilitation provisions of $1.2bn.
Alcoa will acquire South32's interests in Worsley Alumina (86%), Hillside Aluminium (100%), MRN bauxite (33%), Brazil Alumina refinery (36%) and Brazil Aluminium smelter (40%) under the transaction.
Mozal Aluminium is excluded from the deal, with divestment being considered, South32 said
