South32 completes acquisition of new stake in Brazilian bauxite producer

South32 Minerals has completed the acquisition of an additional stake in Mineração Rio do Norte (MRN), a Brazilian company that operates the country's largest bauxite mine.

South32, which already owned 14.8% of MRN, purchased an additional 18.2% from Grupo Alcoa, increasing its total stake in the Brazilian firm to 33%. 

"We are happy to conclude the acquisition of an additional interest in Mineração Rio do Norte, ensuring greater access to bauxite for our integrated aluminum supply chain," South32 Minerals said in a statement. 

MRN is a joint venture created in 1967 by mining firms Vale, South32 Brasil, Grupo Alcoa, Companhia Brasilia de Alumínio (CBA), Alcan Alumina and Norsk Hydro Brasil. The conclusion of the acquisition, for an undisclosed amount, took place shortly after Brazil’s antitrust authority Cade approved the deal.

The acquisition of a larger stake in MRN is an important step in the context of South32 and its joint venture partners for the completion of the pre-feasibility study of a project to extend mine life, potentially for more than 20 years. 

"The expectation is that the study will be completed in the first half of the 2023 financial year," South32 Minerals said in the same statement.

According to the BNamericas database, with the conclusion of the deal, MRN ownership structure is now the following: Vale (40%), South32 (33%), Alcan Alumina (12%), CBA (10%) and Norsk Hydro (5%).

The company’s bauxite mine is located in Porto Trombetas in the northern state of Pará.