Mozambique is intensifying efforts to keep South32’s Mozal aluminium smelter operating, highlighting its importance to jobs, exports and the broader economy, the country’s mineral resources and energy minister Estevao Pale said. The government is working to resolve power supply challenges that have put the future of the smelter at risk, Pale told reporters on the sidelines of an industry event in Cape Town, as reported by Reuters.
South32 warned in December that it could place the Mozal smelter under care and maintenance by March 2026 after failing to secure a new long-term electricity agreement. The company said shutting the facility would involve a one-off cost of about $60 million, citing the difficulty of obtaining affordable and reliable power for the energy-intensive operation, according to MarketScreener.
The Mozal smelter, located near Maputo, is one of Mozambique’s largest industrial assets and a major source of export revenue. It relies heavily on electricity from the Cahora Bassa hydropower system, with additional supply historically linked to South Africa’s Eskom, making power pricing and availability central to negotiations between the government, utilities and the operator, as highlighted in the Reuters report.
Mozambican officials say discussions with South32, and power suppliers are ongoing, stressing that keeping the smelter open is a priority given its economic significance. Analysts note that a closure would have ripple effects across employment, exports and industrial confidence, underscoring the stakes as talks continue ahead of the current power arrangements expiring.
Image Credit: uk.marketscreener.com
