Mozal may be placed on care and maintenance past March 2026

South32 will reduce the investment into its Mozal aluminium operation as it struggles to secure an electricity supply past March 2026. The decision follows a July 2025 announcement that the site was facing uncertainty.

As part of the limitations of investments, South32 will stop pot relining and stand down associated contractors from this month. The Australian company has outlined a loss of US$372m for the Mozambique site in FY25, due to the likely scenario that operations cease past the current supply agreement.

South32 said: “Without access to sufficient and affordable electricity, we expect that Mozal will be placed on care and maintenance at the end of the current agreement.”

South32 expect FY26 production to be at 240kt, reflecting the decrease in operational pots.

In a financial statement last week, South32 said: “We have continued to engage with the Government of the Republic of Mozambique, Hidroeléctrica de Cahora Bassa, and Eskom on securing sufficient and affordable electricity supply,

“These engagements do not provide confidence that Mozal will secure sufficient and affordable electricity beyond March 2026.”