Mozal Smelter Closure: South32 & Mozambique Power Dispute | News & Updates

South32 has confirmed the planned closure of its Mozal aluminium smelter in Mozambique, slated for March, despite recent efforts by the Mozambican government to keep the facility operational. The decision follows a period of strong financial performance for the Australian mining company, but signals a shift away from energy-intensive aluminium production in a region facing significant power challenges.

Mozambique’s Minister of Mineral Resources and Energy, Carlos Zacarias, stated the government was actively working to prevent the shutdown, according to reports from Mining.com and Reuters. These efforts included discussions with South32 executives, but ultimately proved unsuccessful. The smelter, a major employer and contributor to Mozambique’s economy, is being wound down due to a combination of factors, including high energy costs and an uncertain long-term power supply.

South32’s decision comes after a period of profitability, as highlighted in recent financial reports. However, the company has determined that the long-term viability of Mozal is compromised by the existing energy landscape. The plant’s substantial electricity consumption has been a persistent concern, particularly given the reliability of Mozambique’s power grid.

The potential loss of Mozal represents a significant blow to Mozambique’s industrial sector. The facility is the country’s largest single industry, and its closure will impact employment and government revenue. According to Club of Mozambique, the government views maintaining the smelter’s operation as a priority.

News of the closure initially prompted a positive reaction in the Australian stock market, with South32 shares rising, as reported by TechStock². This suggests investor confidence in the company’s strategic decision to focus on more profitable ventures. However, the long-term implications for Mozambique remain uncertain.

As of February 12, 2026, the Mozambican government has not issued a further statement regarding potential alternative solutions or negotiations with South32. The company has maintained its timeline for the complete shutdown of the Mozal plant in March.