Mining and metals group South32 Limited has confirmed that the Mozal aluminium smelter in Mozambique has been placed on ‘care and maintenance’ from 15 March after it failed to secure affordable power supplies for the plant
Its existing energy tariff is due to expire at the end of March, and negotiations have failed to agree on a new price that would allow the facility to continue operating sustainably.
As a result, South32, which is listed in South Africa, Australia and the UK, has mothballed the facility at considerable cost while longer-term options are assessed.
One-off costs to place Mozal into care and maintenance, including employee separation costs and the termination of contracting arrangements, are estimated at approximately US$60mn.
Ongoing annual care and maintenance costs are expected to be approximately US$5mn, according to a South32 statement released on 16 March, 2026.
“Over the past six years we have engaged extensively with the government of the Republic of Mozambique, Eskom and other key stakeholders, but were unable to secure sufficient and affordable power supply for Mozal beyond March 2026,” said Graham Kerr, South32’s CEO.
“While this is not the outcome we wanted, we are proud of the history and significant contribution Mozal has made to the local community and the Mozambican economy over its 25 years of operation.”
The statement added that alumina supplied from the company’s Worsley Alumina refinery to Mozal will now be sold to third-party customers at index-linked prices.
Located near Maputo, the Mozal smelter produced high-quality primary aluminium for both domestic and export markets.
South32 holds 63.7% of Mozal, alongside the Industrial Development Corporation of South Africa Limited (32.4%) and the Mozambique government (3.9%).
Read more:
Ivanhoe Mines upgrades on-site power supply
Mozal smelter in Mozambique mothballed
The Mozal aluminium smeltter in Mozambique (Image source: South32)
