THE Development Bank of Southern Africa (DBSA) on Sunday said it had agreed to extend a R320-million ($40-million) loan to expand the Mozal aluminium smelter in Mozambique. The completion of the second stage of the smelter will double its output to 506_000 tonnes of aluminium per year, and will cost one billion dollars, the bank said in a statement. Mozal, which is situated outside the Mozambican capital of Maputo, accounts for about two percent of world aluminium output. DBSA chief executive and managing director Mandla Gantsho said the bank had made the loan in a bid to “support economic development in the (14-nation) Southern African Development Community.” The main sponsor for the project is Billiton-BHP, one of the world’s largest aluminium producers. Mozal’s expansion is expected to boost Mozambique’s foreign exchange earnings by $100-million and its gross domestic product by seven percent. – AFP
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