"Mozal Aluminium closes its doors, leaving an industrial void in Mozambique"

Australian mining company South32 has confirmed the closure of operations at Mozal Aluminium, placing the company on a "care and maintenance" regime effective March 15, 2026.

South32's CEO, Graham Kerr, explained that the decision was motivated by a lack of consensus in negotiations with the Mozambican government, Eskom, and other partners, mainly regarding the cost and availability of electricity.

According to Kerr, despite more than six years of negotiations, it was not possible to guarantee a sufficient energy supply at competitive prices beyond March 2026. Even so, he acknowledged that this was not the outcome the company had hoped for.

“We are proud of the impact Mozal has had on the economy and local communities over its 25 years,” he stated.

The one-time costs associated with the shutdown, including severance pay and employee layoffs, are estimated at around $60 million. Annual maintenance costs are estimated at around $5 million.

Located in the Beluluane Industrial Park, in Maputo province, Mozal was one of the largest private investments in the country, valued at around two billion dollars, and contributed significantly to the industrial development of Mozambique.

Currently, South32 owns 63.7% of the company, while Industrial Development Corporation owns 32.4% and the Mozambican state 3.9%.