• Australian miner South32 placed the Mozal aluminium smelter in maintenance on March 16, 2026, after its electricity supply contract expired.

• Negotiations with the Mozambican government, Eskom and other partners failed to secure affordable long-term power supply.

• The Mozal plant employs more than 2,500 workers and contributes about 4% of Mozambique’s GDP.

Australian mining company South32 said on March 16, that it placed its Mozal aluminium smelter in Mozambique under maintenance. The company made the decision after the smelter’s electricity supply contract expired this month and negotiations to renew the agreement failed.

South32 had issued several statements in recent months warning that it could suspend Mozal’s operations if negotiations did not secure a reliable power supply. The plant represents a major contributor to the local economy and employed about 2,500 workers.

Mozal Aluminium ranks as Africa’s second-largest aluminium smelter, behind the Hillside smelter in South Africa. The facility operates using electricity supplied by state-owned power producer Hidroeléctrica de Cahora Bassa (HCB). However, negotiations on a new power supply agreement stalled as the contract approached expiration.

South32 said disagreements over electricity tariffs prevented the parties from reaching a new agreement. As a result, the company proceeded with its plan to halt operations once the contract expired.

“Over the past six years, we have held in-depth discussions with the Government of the Republic of Mozambique, Eskom, and other key stakeholders, but we have been unable to secure a sufficient and affordable electricity supply for Mozal beyond March 2026,” said Graham Kerr, Chief Executive Officer of South32.

Aluminium smelters require stable and affordable electricity supplies because the facilities consume large amounts of energy. Therefore, the lack of a long-term power agreement likely played a decisive role in South32’s decision to suspend the plant’s operations.

Meanwhile, the suspension deprives South32 of one of its flagship assets and removes a major contributor to Mozambique’s economy. According to the operator, Mozal Aluminium employed more than 2,500 workers in 2024 and generated economic activity equivalent to around 4% of Mozambique’s annual GDP.

For now, neither South32 nor Mozambican authorities have indicated whether the parties could resume negotiations to restore the smelter’s operations.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange J.A de Berry Quenum