Mozal aluminium output climbs 12%, but power uncertainty casts shadow on future

Aluminium production at Mozal, Mozambique’s largest industrial operation, rose 12 per cent year-on-year to 265,000 tonnes in the nine months ending March 2025, supported by improved operational conditions and the successful execution of South32’s recovery plan following civil unrest after the October 2024 elections.

Image for representational purpose

According to data reviewed by Lusa, South32 linked the output rise to efforts aimed at “mitigating the impacts of civil unrest” in the country.

While quarterly performance improved, full-year FY 2024 production dropped 9 per cent to around 314,000 tonnes from the last year, reflecting persistent challenges around energy supply.

The document states, “Operational conditions in Mozambique improved during the first quarter of 2025, allowing the smelter to approach nominal production rates to complete the period.”

The smelter, located in the Boane district of Maputo province, is forecast to produce 350,000 tonnes of aluminium in 2025. However, South32 has raised concerns over the absence of sufficient renewable energy alternatives to support operations once the current power contract ends in March 2026.

With ongoing drought and stalled negotiations with Hidroeléctrica de Cahora Bassa (HCB), South32 has flagged a potential impairment in its FY25 results and is reassessing the long-term viability of the smelter.

 The company said it is “working with South African company Eskom and the government towards extending the supply of hydroelectric power to the smelter.”

Further updates are expected in its quarterly operations review on July 21.

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