Africa’s second-largest aluminium plant, the Mozal smelter in Mozambique, may halt operations in March 2026 after owner South32 Ltd. failed to secure a new electricity supply agreement ahead of its current contract’s expiry.
South32 said the proposed new electricity tariff would render the operation unviable, prompting the company to prepare for a potential care-and-maintenance phase.
South32’s vice president of supply, Rob Jackson, told the publication that negotiations remain stalled, making a shutdown the most probable outcome once the existing deal lapses.
The closure would endanger about 2,500 jobs and threaten one of Mozambique’s key export earners.
Aluminium, entirely from Mozal, generated $1.1 billion in export revenue in 2024, according to Bloomberg.
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South32 has already taken a $372 million write-down in anticipation of the move, while its shares fell 6.3% on the Johannesburg Stock Exchange yesterday.
If operations cease, roughly 950 megawatts of electricity would be freed up.
Joaquim Ou-Chim, CEO of state utility Electricidade de Moçambique, suggested the surplus could be redirected to meet surging demand from copper producers in Zambia and the Democratic Republic of Congo.
Electricity was Mozambique’s fourth-largest export last year, valued at $689 million.
The government is targeting universal access in sub-Saharan Africa by 2030, alongside a broader push into sustainable energy and liquefied natural gas (LNG) projects, including the planned restart of TotalEnergies’ $20 billion LNG venture and a World Bank-backed mega-hydropower development.
Image Credit: Inside Africa
