Exxon chief sought security assurances for gas terminal from Mozambique president, FT reports
South32 to place Mozal under care and maintenance in 2026; sees $372 million impairment
6:24 CAT | 14 Aug 2025
File photo: Mozal
Australia’s South32 said on Thursday it will take a $372 million impairment on its Mozal aluminium smelter in Mozambique and place the facility into care and maintenance once its current power supply agreement expires.
The diversified miner had warned in July that it would face an impairment at Mozal during fiscal 2025 and was reviewing production after failing to secure affordable power beyond March 2026. At the time, it did not disclose the size of the charge.
South32 said it has since continued engagement with the Mozambique government, hydroelectric producer Hidroeléctrica de Cahora Bassa (HCB) and South African utility Eskom since July.
“These engagements do not provide confidence that Mozal will secure sufficient and affordable electricity beyond March 2026,” South32 said on Thursday.
HCB, majority-owned by the Mozambique government, is the primary power supplier to Mozal. When it cannot meet the smelter’s needs, Eskom steps in under the current agreement.
The miner expects its share of Mozal’s output in fiscal 2026 to fall to about 240 kilo tons, compared with 355 kilo tons in 2025.
July was the second time South32 flagged impairments at its Mozal project. In December, nationwide protests in Mozambique disrupted operations and weighed on production.
Source: Reuters
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