South32 threatens to shut Mozal smelter as power talks drag on
South32 announced it expects to stop operating the Mozal smelter from March 2026. The company has cited that continued engagements with power suppliers and the Government of Mozambique (which has a minor ownership in the Mozal smelter) do not provide confidence that Mozal will secure sufficient and affordable electricity beyond March 2026.
Mozambique is the largest exporter of primary aluminum ingots to the European Union. In the first five months of 2025, the EU imported 218k mton of unalloyed unwrought aluminum from Mozambique, which equates to 22% of the EU’s respective total imports in this period and translates to an export run-rate of 527k mtpy. Metal units from Mozal are considered green (with a CO2 footprint below 4 mton of CO2e) per HARBOR’s assessment.
If this curtailment materializes, Europe loses a major source of prime metal and the world’s primary aluminum market will tighten from the current surplus position to a deficit/short position in 2027.
Read the full article by Reuters here.
[Mozal Aluminium – Source: South32]