Mozal announces suspension of aluminum production from 2026 due to energy costs

Mozal SA, one of the largest aluminum smelters in Southern Africa, has announced the suspension of its operations in Mozambique from March 15, 2026. This strategic decision, taken after months of evaluation, is due to the lack of electricity at competitive prices – a factor considered essential for the sustainability of the production process and for the company's international competitiveness.

According to Samuel Samo Gudo, Chairman of the Board of Directors of Mozal, the company made several attempts to negotiate with energy suppliers, however, without reaching a viable agreement. The situation became even more critical due to the reduction in the generation capacity of the Cahora Bassa Hydroelectric Plant, impacted by the prolonged drought. Consequently, Mozal was forced to resort to alternative sources, such as the South African Eskom, whose tariffs are significantly higher. Faced with this scenario, the management decided not to acquire additional raw materials beyond March 2026.

Without a doubt, the suspension of activities represents a severe blow to the Mozambican economy, with a direct impact on tax revenues, job retention, and investments associated with the sector. For 25 years, Mozal has played a fundamental role in the country's industrial growth, exports, and social responsibility initiatives. The company assures, however, that it is committed to a responsible transition that respects the rights of workers and neighboring communities. Finally, Mozal remains open to dialogue with the Government in the search for possible solutions.