Australian miner South32 has confirmed that its Mozambique aluminium plant will be placed on care and maintenance next month, despite reporting first-half profit that exceeded analyst expectations. The decision comes after persistent challenges in securing affordable and reliable electricity for the energy-intensive smelter, Reuters reported.
The Mozal aluminium smelter, one of Mozambique’s largest industrial employers with more than 2,000 direct and an equal number of contract workers, will wind down operations when its current electricity contract expires in March 2026. Outgoing CEO Graham Kerr said efforts to secure a new power agreement with regional suppliers, including Eskom and Mozambique’s hydroelectric provider, were unsuccessful, according to MarketScreener reports.
The announcement coincided with South32 posting an underlying first-half profit of $435 million, up from $375 million a year earlier, driven by higher commodity prices, cost discipline, and improved performance at its Australian manganese operations. The company declared an interim dividend of 3.9 cents per share, up from 3.4 cents a year earlier.
South32’s decision to wind down Mozal, following a $372 million impairment in 2025, underscores the challenges facing energy-intensive aluminium production in regions with constrained power supply. The company said aluminium previously produced at Mozal will likely be redirected to other markets, including the Middle East.
