Nova Austral and Trusal announce joint venture to produce salmon in Magallanes

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Salmones Austral subsidiary working with Nova Austral to operate three licences – combined production of 19,000 tonnes by 2022 is on the cards.

In a press release on the Oslo Stock Exchange, Norwegian-owned salmon farmer Nova Austral writes that the joint venture will operate three licenses on Skyring Sound, in the Magallanes region of Antarctic Chile.

The partners will initially consider two production cycles, with the intention to extend beyond this period. The joint venture contemplates a combined production of approximately 19,000 tonnes through 2022 (7,000 tonnes during 2021 and 12,000 tonnes in 2022).

Nova Austral will provide smolts from its hatchery in Porvenir, Tierra del Fuego, southern Chile. and will operate, process and sell high-end salmon through its brand Sixty South. In turn, Salmones Austral will supply the feed, three concessions for the joint operation and fixed assets for two of the farms.

Financially, Nova Austral and Salmones Austral will split the proceeds equally.

It marks the first positive news for the Oslo Stock Exchange registered Nova Austral (which is chaired by Norwegian Yngve Myhre) since it was engulfed in the alleged “Salmon Leaks” accusations of last year.

Salmones Austral was created in 2013 after the merger of Trusal and Pacific Star which has 20 salmon farms in the regions of Maule, Biobío, La Araucanía, Los Lagos and Aysén. Its annual production fluctuates between 45-50 thousand tonnes and has the potential capacity to reach 80 thousand tons. 63% of its annual production is Atlantic salmon, the other 37% is coho salmon.