Mozal project will benefit 150 SA companies

Leonard Neill EXPORTS FROM South Africa to the Mozal II aluminium smelter in Mozambique will earn the country R2.6 billion and benefit 150 South African companies, according to the Industrial Development Corporation (IDC). This is the result of a $250 million foreign funding arrangement for Mozfund, a special company established to finance exports from this country to the smelter. The financing has been arranged through a series of local and international banks and export credit guarantee agencies, with two German institutions, Deutsche Bank, and HypoVerinsbank, the main contributors. Loans have repayment periods of up to ten years from completion of the project. The financing package, says the IDC announcement, will fund SA exports for the construction and engineering of Mozal II, in which the IDC has a 24% stake, BHP-Billiton 47%, Mitsubishi 25% and the Mozambican government the remaining 4%.