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Mozambique’s Mozal aluminum smelter halted operations in March 2026 due to unaffordable electricity after its power contract expired.
Mozambique’s Mozal aluminum smelter, near Maputo, has halted production and entered care and maintenance due to an inability to secure affordable electricity after its power contract expired in March 2026.
The 320,000-ton-per-year facility, operated by Australia’s South32, relies on the drought-affected Cahora Bassa hydropower plant and has failed to secure backup power from South Africa’s Eskom.
The shutdown, ending 25 years of operations, affects about 1,100 direct jobs and up to 5,000 indirect ones, with economic impacts on Maputo Province’s industrial output and export revenue.
Restarting could take at least 12 months, and no takeover interest has emerged.
South32 faces $60 million in severance and termination costs, plus $5 million monthly for maintenance.
La fundición de aluminio Mozal de Mozambique detuvo sus operaciones en marzo de 2026 debido a la electricidad inasequible después de que expirara su contrato de energía.