16 DECEMBER 2025
South32 has provided an update regarding Mozal Aluminium (Mozal), which will be placed on care and maintenance on or around 15 March 2026.
Veja informações sobre este anúncio em português
We have continued to engage with the Government of the Republic of Mozambique, Hidroeléctrica de Cahora Bassa (HCB) and Eskom to seek sufficient and affordable electricity supply for Mozal beyond March 2026, when the current agreement expires.
Despite these efforts, a new electricity supply agreement has not been secured and Mozal will be placed on care and maintenance on or around 15 March 2026. Accordingly, raw materials required to sustain operations beyond March 2026 have not been procured.
South32 Chief Executive Officer, Graham Kerr, said: “Throughout our engagements we emphasised that Mozal’s ability to continue operating depended on securing sufficient electricity at a price which allows the smelter to remain internationally competitive.
“Unfortunately, the parties remained deadlocked on an appropriate electricity price, which was exacerbated by ongoing drought conditions affecting electricity supply from HCB. We must now turn our attention to safely placing the smelter on care and maintenance from March 2026.
“We understand today’s announcement is difficult for our team at Mozal and we are focused on supporting them through this process. We also acknowledge the impact this will have on our suppliers, customers, communities and other stakeholders, and we are engaging with them as we transition from operations to care and maintenance in the coming months.”
Mozal's FY26 production guidance for the period to March 2026 is unchanged at 240kt (South32 share).
One-off costs to place Mozal into care and maintenance, including employee separation costs and termination of contracting arrangements, are expected to be approximately US$60M (100% basis). Ongoing annual care and maintenance costs are expected to be approximately US$5M (100% basis).
The alumina supplied from our Worsley Alumina refinery to Mozal will be sold to third party customers. South32 has secured options with customers to sell this alumina at index-linked prices.
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