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The Mozambican government said negotiations are under way regarding the future of the Mozal aluminium smelter, the country's largest industrial operation.
{alcircleadd}The facility has been under care and maintenance since March after operations were halted over concerns about rising electricity costs.
Government spokesperson Salim Valá confirmed that discussions are taking place with interested parties but declined to provide details, saying the process is still ongoing.
The update comes after South32, the majority owner of Mozal, said it is reviewing different options for the smelter. The company has a 63.7 per cent stake in the project and has not ruled out a future restart if conditions improve.
According to reports, South Africa's Industrial Development Corporation (IDC), which owns 32.48 per cent of Mozal, is exploring the possibility of taking a larger role in the project. The organisation has launched a tender seeking advice on the commercial and technical viability of acquiring the smelter and restarting production.
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The proposed study will examine operating costs, financing options, energy supply solutions and potential partners for the facility.
A key issue remains electricity pricing. South32 previously said the power tariff offered for the operation was too high to support profitable production. During an investor briefing, the company noted that electricity represents roughly one-third of Mozal's operating costs.
The smelter requires around 950 megawatts of power and relies on electricity supplied from Mozambique's Cahora Bassa hydropower plant through South Africa's Eskom network. The previous supply agreement expired in March.
Before production was suspended, Mozal employed about 4,000 workers and was one of Africa's largest aluminium smelters.
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