South32 operates Mozal Aluminum in Mozambique has been placed under care and maintenance.
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Mozal Aluminium (Mozal), one of the biggest industrial groups in Mozambique, has been put on care and maintenance due to high electricity costs, after running continuously for the past 25 years.
The plant’s major shareholder, the Australia-headquartered JSE-listed mining and metals group South32, said on Monday that Mozal, located near Maputo, Mozambique, now in care and maintenance, had produced high-quality primary aluminium for domestic and export markets. Care and maintenance suggests the plant might be reopened at a later stage.
"Over the past six years, we have engaged extensively with the government of Mozambique, Eskom, and other key stakeholders, but were unable to secure sufficient and affordable power supply for Mozal beyond March 2026,” said South32’s CEO Graham Kerr in a statement.
Previously, the Congress of South African Trade Unions (Cosatu) had raised alarm about the impact of a potential mothballing, as this would affect some 5,200 workers at Mozal and 22,000 indirect downstream jobs in South Africa, linked to the company.
In December 2025, the National Transmission Company of South Africa, a subsidiary of Eskom, said it would try to negotiate a solution for Mozal.
"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 in its 25 years of operation," Kerr said.
South32 holds a 63.7% shareholding Mozal, the Industrial Development Corporation of South Africa holds 32.4%, and the Government of Mozambique holds a 3.9% stake. The $2 billion investment it took to establish the plant had been the biggest investment to date in Mozambique, at the time. Mozambique remains one of the poorest countries in the world.
Once-off costs to place Mozal into care and maintenance, including employee separation costs and termination of contracting arrangements, had come to about $60 million (R1.007 billion) (100% basis), South32 said.
Ongoing annual care and maintenance costs would be about $5 million (100% basis).
The alumina that had been supplied from the group’s Worsley Alumina refinery in Western Australia to Mozal, would now be sold to third-party customers at index-linked prices.
Last month, at the release of South32’s interim results to December 31, 2025, the group directors said they were advancing growth options in copper, zinc, and silver, with life extension opportunities and further greenfield potential.
Aluminium made up 22% of the group’s earnings before interest, tax, depreciation, and amortisation for the period. Spot aluminium prices had increased 13% for the six month period. The unit operating costs for the Hillside aluminium smelter, which South32 operates in Richards Bay, amounted $2.295 per ton.
Two weeks ago, South32 announced in KwaZulu_Natal it was rolling out plans to facilitate more downstream beneficiation and keep South Africa on the map as a competitive centre for aluminium production and conversion.
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