Business Smelter closure

South32 Closes Mozal Aluminium Smelter

Analysis based on 14 articles · First reported Feb 12, 2026 · Last updated Mar 16, 2026

Sentiment

-20

Attention

Articles

Market Impact

Direct

Live prominence charts, article sentiment distribution, and event development timeline available on the NewsDesk Dashboard

Market Impact

The closure of South32===Mozal Aluminium by South32 due to unaffordable electricity supply will negatively impact the aluminium market by reducing supply. It also highlights the challenges faced by energy-intensive industries in Southern Africa due to high power costs from entities like Eskom, potentially leading to further closures and job losses.

Mining Utilities Aluminum

Event Summary

South32 has placed its South32===Mozal Aluminium smelter in Mozambique on care and maintenance, effective March 15, after failing to secure an affordable electricity supply deal beyond March 2026. CEO Graham Kerr stated that six years of extensive engagements with the government of Mozambique, Eskom, and other stakeholders did not yield a viable agreement. Historically, Mozal's electricity was primarily supplied by Hidroeléctrica de Cahora Bassa, with Eskom providing supplementary power. The decision will incur one-off costs of approximately USD60 million and ongoing annual costs of USD5 million for South32. The alumina previously supplied from South32's South32===Worsley Alumina refinery to Mozal will now be sold to third-party customers. South32===Mozal Aluminium, a significant investment in Mozambique, produced 355,000 tonnes of aluminium in the last fiscal year and its closure will impact the local economy and workforce.

Key Actions

100 South32 placed South32===Mozal Aluminium on care and maintenance South32===Mozal Aluminium

90 South32 failed to secure affordable power supply

80 Eskom failed to provide affordable power supply

70 Mozambique failed to secure affordable power supply

60 South32 will sell alumina to third-party customers

Entities Involved

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South32

South32 has placed its South32===Mozal Aluminium smelter on care and maintenance due to the inability to secure an affordable electricity supply. This decision will result in one-off costs of approximately USD60 million and ongoing annual costs of USD5 million. The company will now sell alumina from its South32===Worsley Alumina refinery to third-party customers.

Importance 100 Sentiment -50

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South32===Mozal Aluminium

South32===Mozal Aluminium, an aluminium smelter, has been placed on care and maintenance due to the failure to secure an affordable electricity supply. This effectively halts its operations, impacting its contribution to the local community and the Mozambican economy.

Importance 100 Sentiment -100

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Eskom

Eskom, the state-owned electricity supplier of South Africa, was unable to provide an affordable power supply agreement for South32===Mozal Aluminium. Its high electricity costs have been cited as a burden on smelters in Southern Africa, leading to closures and job losses.

Importance 80 Sentiment -30

cnt

Mozambique

The closure of South32===Mozal Aluminium, a significant private investment in Mozambique, will negatively impact the local community and the Mozambican economy. The government was involved in negotiations for a new power supply agreement but failed to secure one.

Importance 70 Sentiment -20

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Graham Kerr

Graham Kerr, CEO of South32, announced the decision to place South32===Mozal Aluminium on care and maintenance after six years of failed negotiations. He expressed regret but also pride in Mozal's historical contributions.

Importance 60 Sentiment -20

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Hidroeléctrica de Cahora Bassa

Hidroeléctrica de Cahora Bassa, a hydro-electric power generator majority-owned by the Mozambican government, was involved in negotiations for a new power tariff for South32===Mozal Aluminium. Drought conditions also impacted its electricity generation capacity.

Importance 60 Sentiment -10

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South Africa

South Africa, through Eskom, was unable to provide an affordable power supply to South32===Mozal Aluminium. The rising cost of Eskom's electricity has placed a heavy burden on smelters in Southern Africa, leading to several operations in South Africa being idled.

Importance 40 Sentiment -10

+ 2 more entities View on Dashboard

Relationships

South32 related ↔ South32===Mozal Aluminium

Industrial Development Corporation of South Africa related ↔ South32===Mozal Aluminium

Mozambique related ↔ South32===Mozal Aluminium

Hidroeléctrica de Cahora Bassa related ↔ Mozambique

Eskom related ↔ South32===Mozal Aluminium

South32 related ↔ South32===Worsley Alumina

South32 related ↔ Mozambique

South32 related ↔ Eskom

Mozambique related ↔ Eskom

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