【Ferro-alloys.com】: South32 is preparing to mothball its Mozal aluminium smelter in Mozambique from next year, with production to continue until March 2026.

It comes as the mining company works to secure “sufficient and affordable” electricity supply for the facility through negotiations with the Government of Mozambique, the Cahora Bassa hydroelectric scheme, and power company Eskom.

The company said the talks “do not provide confidence” that Mozal will have adequate access to electricity beyond March 2026.

“As a result, we will limit investment in Mozal, stopping pot relining and standing down associated contractors starting this month,” South32 said.

“Without access to sufficient and affordable electricity, we expect that Mozal will be placed on care and maintenance at the end of the current agreement.”

South32 has also written down the book value of the asset, to the tune of 84 per cent of the previous valuation.

“We will recognise an impairment of $US372 million for Mozal, which includes $US339 million of property, plant, and equipment, $US7 million of intangible assets, and $US26 million of raw materials and consumables,” the company said. “The impairment reduces Mozal’s carrying value to $US68 million.”

Mozal’s production for 2026 is expected to be approximately 240,000 tonnes, reflecting fewer pots in use and operations continuing only in the first part of next year. Mozal produced 355,000 tonnes of aluminium in the 2024–25 financial year.

• [Editor:Alakay]