Mozal Aluminium smelter placed into hibernation
The Mozal Aluminium was placed into hibernation yesterday after The company said it had failed to secure sufficient and affordable power supply for Mozal beyond March 2026.
South32 placed Mozal Aluminium (Mozal) into care and maintenance on 15 March 2026. The company said it had failed to secure sufficient and affordable power supply for Mozal beyond March 2026, resulting in it placing the smelter under care and maintenance.
Negotiations between the Perth-based firm and Mozambique’s government and power suppliers had been going on for several years to reach an agreement for the smelter’s energy-intensive operations.
South32 had been in talks for six years with hydroelectric power supplier Hidroeléctrica de Cahora Bassa (HCB), which is majority owned by the Mozambique government, about a power tariff which is due to expire this month.
Producing aluminium is energy-intensive, making affordable power supply a key concern for aluminium producers such as South32.
The Mozal smelter, in which South32 holds a 63.7% stake, has been a significant contributor to the company’s aluminium output, accounting for just over 29% of its total aluminium production in fiscal 2025.
South32 had flagged a $372 million impairment for the Mozal smelter in its fiscal year 2025 results, reflecting the financial impact of the anticipated shutdown.
South32 Chief Executive Officer, Graham Kerr, said: “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.
“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.”
The alumina supplied from the firm’s Worsley Alumina refinery to Mozal will now be sold to third party customers at index-linked prices, the company said in its statement.
