South32 (ASX:S32) has placed the Mozal aluminium operations on care and maintenance, following six years of engaging extensively with the Government of the Republic of Mozambique, Eskom and other key stakeholders.
Mozal Aluminium, located near Maputo in Mozambique, has a smelter that produces primary aluminium for domestic and export markets. South32 holds 63.7% of Mozal, while the Industrial Development Corporation of South Africa holds 32.4% and the Government of the Republic of Mozambique holds 3.9%.
CEO Graham Kerr says the company is unable to secure sufficient and affordable power supply for Mozal beyond March 2026.
“While this is not the outcome we wanted, we are proud of the history and significant contribution Mozal has made to the local community and the Mozambican economy in its 25 years of operation,” Kerr says.
South32 says one-off costs place Mozal into care and maintenance, including employee separation costs and termination of contracting arrangements are US$60 million ($85 million). Ongoing annual care and maintenance costs are US$55 million.
South32 is a mineral producer focused on critical metals needed for the world’s energy transition. The company operates across the Americas, Australia and Southern Africa.
Write to Aaliyah Rogan at Mining.com.au
Images: South32
