South32's Mozal Aluminium closure a big blow for Mozambique economy

Biggest industrial employer in Mozambique will be put on care when electricity agreement expires

- EDWARD WEST

SOUTH32 said its Mozal Aluminium facility, the biggest industrial employer in Mozambique with over 2 500 staff, will be put on care and maintenance when its electricity agreement expires at the end of March 2026.

Apart from the employees and contractors that were employed at Mozal in 2024, an estimated additional 21 000 jobs had been created through multiplier impacts on the economy, the mining group said. South32’s share price plunged 5.83% to R33.41 on the JSE early Thursday morning.

South32 said in a notice on Thursday that it had continued to engage with the Mozambique government, Hidroeléctrica de Cahora Bassa (HCB), and Eskom on securing additional electricity, as it has been trying to secure an agreement for over six years.

South32 also operates the Hillside smelter in Richards Bay, with both smelters supplied with alumina that is mostly mined and imported from Australia. The impact stretches beyond the direct workforce at Mozal, as the facility supports not only smelting operations but also downstream industries and infrastructure development.