According to international media reports, South32 announced on Tuesday that, due to its failure to reach a power supply agreement with the Mozambican government, it will place the Mozal aluminum smelter into maintenance starting March 2026, incurring a one-off cost of approximately USD 60 million.
It is understood that negotiations between South32, the Mozambican government, and power suppliers have been ongoing for several years, aiming to secure a long-term agreement supporting the smelter’s energy-intensive operations.
South32 CEO Graham Kerr stated, “The parties remain deadlocked over an appropriate electricity tariff, and the situation has been further exacerbated by persistent drought conditions affecting power supply from HCB.” (Note: HCB refers to Hidroeléctrica de Cahora Bassa, the hydroelectric power producer.)
Under the current power supply agreement—set to expire in March 2026—South Africa’s state-owned utility Eskom steps in to supplement power when the primary supplier, HCB, cannot meet Mozal’s full electricity demand.
South32 holds a 63.7% stake in the Mozal smelter, which has been a significant contributor to the company’s aluminum output, accounting for more than 29% of its total aluminum production in fiscal year 2025.
