Mozambican aluminum exports secure 317.3M EUR until Mozal’s closure

Mozambican aluminum exports yielded 317.3 million euros in the first quarter, following the 2025 record and prior to the March closure of Mozal, the nation’s largest industry and one of the largest smelters in Africa. According to data obtained today by Lusa from the Bank of Mozambique’s most recent report, external sales of aluminum bars yielded 371.4 million dollars (317.3 million euros) between January and March of this year, remaining the primary product of the national manufacturing industry. In 2025, aluminum bar exports reached a historic high of 1,346.9 million dollars (1,150 million euros), representing growth of nearly 20% compared to the 1,126.1 million dollars (961.4 million euros) recorded in 2024, and compared to 1,100.5 million dollars (939.5 million euros) in 2023.

Mozambican aluminum bar exports had been growing, and the central bank explained in a previous report that this increase was “driven both by rising prices and growth in export volume.” Australia’s South32, which leads the smelter, confirmed on March 16 that Mozal entered a care and maintenance regime the previous day, after failing to secure an energy supply deemed sufficient and competitive to maintain production. “Over the past six years, we have engaged extensively with the Government of the Republic of Mozambique, with Eskom [the South African utility that buys energy from Mozambique and sold it to the smelter], and with other stakeholders, but we were unable to secure a sufficient and affordable energy supply for Mozal beyond March 2026,” justified South32 Chief Executive Officer Graham Kerr at the time. The company estimated the costs associated with the suspension of activity at 60 million dollars (51.3 million euros), including contract terminations, while maintaining the smelter is expected to cost around five million dollars per year.

“Although this is not the outcome we desired, we are proud of the history and the significant contribution Mozal has made to the local community and the Mozambican economy in its 25 years of operation,” added Kerr. The smelter employed more than 1,000 direct workers and about 4,000 indirect workers, serving as one of the country’s primary industrial engines. Even before the activity suspension, at least five companies had already closed operations and dozens of others were evaluating similar measures at the Beluluane Industrial Park in southern Mozambique due to their dependency on Mozal.

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“We estimate a universe of 25 companies that provide goods and services to Mozal. We have already been informed that the majority of these companies, in light of the standstill of activities at Mozal, are also considering triggering mechanisms to the same proportion,” Mozparks general manager Onório Manuel, the entity managing the park, told Lusa in March. He noted that the suspension of the smelter’s activity will have significant impacts on the national industrial fabric, recalling that Mozal represented about half of the manufacturing industry’s contribution to Gross Domestic Product (GDP), accounting for 4%.

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