South32’s Mozal Aluminum Posts Production Gains While Power Supply Negotiations Continue

South32’s Mozal Aluminum smelter in Mozambique increased production 12% to 265,000 metric tons in the nine months through March while maintaining annual output guidance at 350,000 tons despite regional instability, the company reported Thursday.

CEO Graham Kerr attributed the performance to the successful implementation of a smelter recovery plan and effective measures to “mitigate the impacts of civil unrest in Mozambique from the December 2024 quarter.” The smelter represents a cornerstone industrial operation for Mozambique’s economy, contributing approximately 5% to the country’s GDP.

A critical issue facing the operation is securing renewable power beyond March 2026, when current agreements expire. “We continue to work with Eskom and the Government of Mozambique to extend the smelter’s hydro-electric power supply,” Kerr said. “There are currently no viable alternative suppliers of renewable energy at the required scale.”

The aluminum smelter receives electricity from the Cahora Bassa hydroelectric scheme on Mozambique’s Zambezi River, which also supplies South Africa’s state-owned utility Eskom. Industry analysts estimate Mozal consumes approximately 900 megawatts of electricity, making it one of southern Africa’s largest industrial power consumers.

“We remain focused on finalizing a new energy supply agreement during calendar 2025 to enable the smelter to continue operations and maintain its substantial contribution to Mozambique’s economy,” Kerr said.

South32 reported that while production guidance for its South African manganese operations remains unchanged at two million tons for the fiscal year ending June, sales declined 18% in the March quarter due to “port congestion impacting the timing of shipments” – highlighting the persistent logistical challenges affecting South African mineral exporters.