Mozambique aluminium export revenues jump in H1 2025 ahead of Mozal shutdown

Mozambique’s aluminium export revenues, entirely dependent on Mozal Aluminium Smelter, the country’s largest industrial operation, which is set to close on 15 March, surged in the first half of 2025 to US$595 million. According to data compiled by Lusa from thelatest reportby the Bank of Mozambique, detailing exports from January to June 2025, this figure compares with US$479.9 million recorded in the same period of 2024. The growth was driven by both higher prices and an increase in export volumes, consisting mainly of aluminium bars.

The International Monetary Fund has acknowledged that the announced suspension of operations at Mozal, one of the largest aluminium smelters in Africa, which failed to reach an agreement with Mozambican authorities on electricity tariffs under a new supply contract, represents a risk to Mozambique’s economy. This position, contained in an assessment report on the Mozambican economy under regular consultations approved on 13 February, states that the risks to Mozambique’s economic outlook are currently “strongly negative”, citing Mozal as an example, given that it represents around 4% of the country’s Gross Domestic Product (GDP). “The ongoing negotiations over electricity tariffs with Mozal represent additional risks,” theIMF reportnotes.

READ:Aluminium traders brace for turmoil as Iran crisis chokes supply Mozambique’s main trade union federation, the Organização dos Trabalhadores de Moçambique – Central Sindical, warned in February that the suspension of Mozal’s activity would represent an “earthquake” for the national economy because of its economic weight and the expected job losses. “If this scenario materialises, we will be facing a kind of national earthquake, the magnitude of which will be felt immediately, since this multinational contributes significantly to GDP, at approximately 4%, and is one of the largest industries in the country, driving exports and generating thousands of direct and indirect jobs,” said Damião Simango, secretary-general of OTM-CS. The warning followed Mozal’s communication to the company’s union committee of its intention to proceed with a collective redundancy, in the context of the planned suspension of operations on 15 March, amid the dispute over electricity tariffs to be supplied to the aluminium smelter.

[paywall]

Lusa reported on 12 February that Mozal would move forward with the collective dismissal as part of the March suspension of activity, according to a notice sent to the smelter’s union committee. The company directly employs more than 1,000 workers. READ:Aluminium jumps as Iran conflict puts Middle East supply at risk

[/paywall]