South32 pulls the plug on Mozal aluminium smelter operations after power deal impasse
Unable to secure a long-term, affordable electricity supply, South32 has placed the Mozal Aluminium Smelter near Maputo, Mozambique, on care and maintenance, effective March 15, 2026. The move effectively brings 25 years of primary aluminium production at the site to a conclusion.
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The step has been taken despite six years of negotiations with the Government of Mozambique, Eskom and other stakeholders regarding future power arrangements for the aluminium smelter beyond March 2026.
While the facility remains idle, South32 expects to incur one-off costs of estimated USD 60 million, as well as current annual care and maintenance expenses worth approximately USD 5 million.
From the shutdown onwards, the alumina received by the Mozal smelter will be redirected from Worsley Alumina Refinery to third-party customers, with sales based on index-linked pricing. This shift will alter the company’s sales mix and reduce the smelter’s contribution to Mozambique’s industrial economy.
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