South32 to halt operations at Mozal Aluminium smelter by March 2026

South32 Limited confirmed its Mozal Aluminium smelter will transition to care and maintenance around March 15, 2026. This decision follows unsuccessful negotiations for a new electricity supply agreement beyond the current contract's expiry, leading to the non-procurement of raw materials for operations past this date.

The company's chief executive, Graham Kerr, stated that an appropriate electricity price, crucial for international competitiveness, could not be agreed upon. This situation was exacerbated by ongoing drought conditions impacting supply from Hidroeléctrica de Cahora Bassa. Mozal's FY26 production guidance up to March 2026 remains unchanged at 240kt (South32 share).

One-off costs for placing Mozal into care and maintenance, including employee separation and contract termination, are estimated at approximately US$60m (100% basis). Ongoing annual care and maintenance costs are projected to be around US$5m (100% basis). Alumina previously supplied from South32's Worsley Alumina refinery to Mozal will now be sold to third-party customers at index-linked prices. South32 holds a 63.7% interest in Mozal Aluminium.