South32 will place its aluminium smelter in Mozambique on care and maintenance in March 2026 after failing to secure a new electricity supply agreement beyond the current contract expiry with Hidroeléctrica de Cahora Bassa. Negotiations with the Mozambican government, HCB, and Eskom stalled due to unresolved power pricing and ongoing drought. One-off shutdown costs are estimated at $60 million. Mozal contributes nearly 29% of South32’s aluminium output.
South32 prepares to place Mozal aluminium smelter under care and maintenance
aluminium electricity costs aluminium power supply issues aluminium production guidance aluminium smelter shutdown Eskom electricity supply global aluminium market HCB power supply hydropower drought impact Mozal aluminium smelter Mozambique aluminium industry South32 care and maintenance South32 FY26 outlook South32 Mozal aluminium South32 Mozambique operations
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