Mozal, Mozambique’s largest aluminium smelter, will be placed on care and maintenance from March 2026 after its owner, South32, failed to secure affordable and reliable electricity to keep the plant running. Mozal is one of Mozambique’s most important industrial assets. Located near Maputo, it produces high-quality aluminium for local use and export, and plays a major role in supporting jobs, suppliers and surrounding communities.
South32 said on Wednesday that despite months of talks with the government of Mozambique, power utility Hidroeléctrica de Cahora Bassa (HCB) and Eskom, no new electricity supply agreements had been reached. As a result, Mozal will stop operating on or about March 15 and be placed into care and maintenance, a state where the plant is kept safe but does not produce aluminium. The company has also stopped buying raw materials needed to run the smelter beyond that date.
South32 CEO Graham Kerr said electricity costs were the main obstacle. “Mozal’s ability to continue operating depended on securing sufficient electricity at a price which allows the smelter to remain internationally competitive,” Kerr said. “Unfortunately, the parties remained deadlocked on an appropriate electricity price.” He said the situation was made worse by ongoing drought conditions, which have reduced electricity supply from HCB’s hydroelectric system.
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The shutdown is likely to have wide ripple effects. South32 acknowledged the impact the decision will have on employees, contractors, customers and local communities, and said it would engage with all stakeholders as the smelter transitions from full operations to care and maintenance. “We understand today’s announcement is difficult for our team at Mozal, and we are focused on supporting them through this process,” Kerr said.
While operations will stop in March next year, South32 said production guidance for the current financial year remains unchanged. Mozal is still expected to produce 240,000 tonnes of aluminium up to March 2026 on South32’s share. Placing the smelter into care and maintenance will not be cheap.
South32 estimates one-off costs of about $60m, which include employee separation costs and ending contracts with service providers. Ongoing annual costs to keep the plant in a safe, non-operating state are expected to be around $5m.
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