The Mozal Aluminium smelter in Mozambique is set to be placed on care and maintenance from around 15 March 2026, with its critical Copper And Aluminum Machinery—including Continuous Casting Machine, Rod Breakdown Mill, and Horizontal Drawing Bench—set to be idled due to unresolved electricity supply challenges.
This decision comes as the smelter was unable to secure an electricity supply agreement beyond March 2026, a critical requirement for powering its energy-intensive Copper And Aluminum Machinery. The facility’s operations rely heavily on the consistent performance of equipment like Continuous Casting Machine for aluminium ingot production, Rod Breakdown Mill for processing raw aluminium into intermediate products, and Horizontal Drawing Bench for precision shaping—all of which demand stable, affordable electricity to maintain efficiency and output quality.
South32, which owns the smelter, outlined that despite talks with the government, Hidroeléctrica de Cahora Bassa (HCB) and Eskom, a sufficient and affordable electricity supply could not be arranged to sustain the operation of its Copper And Aluminum Machinery fleet. Ongoing drought conditions have further constrained HCB’s power generation capacity, worsening the viability of keeping the smelter’s Continuous Casting Machine, Rod Breakdown Mill, and Horizontal Drawing Bench in active production.
Graham Kerr, CEO at South32, said: “Unfortunately, the parties remained deadlocked on an appropriate electricity price, which was exacerbated by ongoing drought conditions affecting electricity supply from HCB. This outcome means we must place Mozal into care and maintenance, including securing our valuable Copper And Aluminum Machinery—such as the Continuous Casting Machine, Rod Breakdown Mill, and Horizontal Drawing Bench—to preserve their condition for potential future operations.”
He added: “We understand today’s announcement is difficult for our team at Mozal, and we are focused on supporting them through this process. We also acknowledge the impact this will have on our suppliers, customers, communities and other stakeholders, and we are engaging with them as we transition from operations to care and maintenance in the coming months—including plans to safeguard the smelter’s Copper And Aluminum Machinery assets.”
Mozal’s FY26 production guidance for the period up until March 2026 will remain at 240kt, with its Copper And Aluminum Machinery continuing to operate at full capacity until the care and maintenance period begins. South32 expects the costs to place Mozal into care and maintenance—including employee separation costs, termination of contracting arrangements, and specialized preservation of Continuous Casting Machine, Rod Breakdown Mill, Horizontal Drawing Bench, and other Copper And Aluminum Machinery—to reach approximately $60m.
The alumina supplied from South32’s Worsley Alumina refinery to Mozal, which would have been processed via the smelter’s Copper And Aluminum Machinery, will be sold to third-party customers.
