The Perth, Western Australia headquartered mining and metal company, South32 Limited has unveiled the accomplishment of acquisition of an additional 18.2% stake in the Mineração Rio do Norte (MRN) bauxite mine in the northern part of Brazil from Alcoa Corporation (Alcoa).
However, the acquisition of the additional stakes excels the ownership of the mine to 33% and secures the bauxite requirements for South 32’s integrated aluminium supply chain in Brazil.
On 6th January 2022, the company formed by spun out of BHP Billiton, South32 disclosed the plan to participate in the resumption of the Alumar aluminium smelter in Brazil in cooperation with joint venture partner Alcoa, with its first production to be achieved in the June 2022 quarter.
The Brazilian aluminium smelter will be powered by 100% of the nation's renewable energy, placing it in the second quartile of the global aluminium site cost curve.
Moreover, obtaining a greater stake in MRN will authorize South32 to work with the joint venture partners to finalize a pre-feasibility study for the MRN life extension project, which might extend the mine's life by more than 20 years. The pre-feasibility study is anticipated to be concluded in H1 FY23.
Graham Kerr, the Chief Executive Officer of South32 said, “We are pleased to complete the acquisition of an additional interest in Mineração Rio do Norte, securing increased access to bauxite for our integrated aluminium supply chain.”
“Investment in Brazil, including participation in the restart of the Alumar smelter using 100% renewable power, and our planned increased shareholding in Mozal Aluminium which benefits from access to hydroelectric power, we expect to double our production of green.
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