South32, the global mining and metals giant has flagged a potential impairment about the future of its Mozal Aluminium smelter, in its FY25 financial results due to deepening uncertainty over the smelter’s long-term electricity supply.
The mining and metals major stated that ongoing contract negotiations and worsening drought conditions have thrown the future of the smelter into question.
The financial hit though not yet quantified could mark a critical turning point for one of Mozambique’s largest industrial operations.
South32 stated in a regulatory filing, “HCB has also recently indicated that drought conditions have the potential to impact its electricity generation and capacity to deliver sufficient hydro-electric power to Mozal.
“These factors have resulted in increased uncertainty regarding future electricity supply to Mozal. Given the uncertainty of operating beyond March 2026, FY26 production guidance for Mozal is under review.”
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