Mozal smelter faces unclear future due to electricity costs

The future of the Mozal Aluminium smelter in Mozambique is unclear as the facility struggles to obtain an electricity supply. The current agreement with Hidroeléctrica de Cahora Bassa (HCB) expires in March 2026, however, Mozal have been unable to agree on an affordable price tariff.

HCB is a hydro-electric power generator owned by the government of Mozambique. HCB has also stated that drought conditions have the potential to hinder electricity supply.

Mozal Aluminium’s owners, South32, stated: “We are assessing the carrying value of Mozal given the increased uncertainty regarding future electricity supply and expect to recognise an impairment expense in our FY25 results.”

It added: “Given the uncertainty of operating beyond March 2026, FY26 production guidance for Mozal is under review.”