Mozal II

completed

The project comprises the doubling of the capacity of the Mozal I aluminium smelter to produce an additional 250,000 tons per annum (tpa) of aluminium metal. Mozal I, to which IFC has existing loan commitments totalling US$120 million, has already produced first metal and is currently nearing completion, six months ahead of schedule and at about US$130 million below the budgeted project cost of US$1,340 million. Mozal I was designed with the Mozal II expansion in mind. In the existing site there is space for the installation of duplicate potline, anode baking, and casthouse facilities. Outside the main site, the only significant additional facilities required will be a second ship unloader and storage facilities at the port -all to be constructed within the existing boundaries of Mozal''s quay- to handle the extra raw materials, and an extra 132kV transmission line from the nearby substation. The project will have significant development impact. Mozambique''s net foreign exchange earnings will increase by over US$100 million, and GDP will increase by an estimated 3.5%. During construction, the project will employ an estimated 5,000 people, with 295 direct and 1,500 indirect jobs being created during operation. Opportunities for local small and medium sized enterprises (SMEs) are expected to be created through Mozal''s policy of out-sourcing all non-core activities to local companies. The import of project inputs from South Africa should further stimulate regional trade and integration. Lastly, with an expected annual spending of the order of US$2 million on social and community initiatives, the Mozal Trust will work to ensure the sustainability of the project''s impact on the local people. IFC''s role will be to: co-ordinate all the lenders for the approximately US$600 million debt package; ensure that the project meets IFC''s environmental and social policies and guidelines; encourage SME development around the project; and, through its continued investment in the country, provide reassurance to potential investors in other Mozambican projects.