Key Points
- South32 halts production guidance for Mozambique aluminum smelter.
- Unrest disrupts supply of raw materials and power to smelter.
- South Africa closes key border, affecting Mozambique trade routes.
Amid unrest, South32 halts production guidance for a smelter in Mozambique.
South32 halts production guidance for Mozambique aluminum smelter
Citing severe turmoil in the wake of the disputed presidential election in Mozambique, Australian miner South32 has removed production guidance for its aluminum smelter in the nation.
The opposition’s accusations that the ruling Frelimo party falsified the results set off the protests, which started following the October election. According to local sources, at least 100 people have been killed, hundreds injured, and thousands jailed in clashes between protesters and police.
The movement of raw materials to the Mozal Aluminium smelter is being hampered by road obstructions brought on by the protests, according to South32, which holds a 63.7% share in the facility. Investors were reassured by the company that there have been no direct security incidents at the plant and that its employees are safe.
In the fiscal year ending in June 2025, it was projected that the Mozal Aluminium smelter, which is situated roughly 20 kilometers west of Maputo, the capital of Mozambique, will produce 360,000 tons of aluminum. However, efforts have been hampered by recent upheaval.
Aluminum production at risk as power plants shut down
Over the weekend, protests led to the closure of two neighboring power plants and injuries close to the capital.
Although it did not give specifics, South32 stated that it has put emergency plans in place to lessen operational consequences.
 According to North miners, South32’s stock closed 2.2% higher at A$3.68 per share in Sydney, bringing its market capitalization to A$16.6 billion ($15 billion). Its shares have fluctuated in value between A$2.75 and A$4.02 over the last 52 weeks.
According to Colin Hamilton, a mining analyst at BMO Capital Markets, the company’s attempts to reduce operational disruptions will probably entail a controlled shutdown of a few potlines at the site.
He went on to say, “Any outage will add to recent capacity resets in China and Russia and possibly boost physical premiums.” But as cargoes search for a new home, there may be more alumina available on the global spot market, which might lead to additional price drops in such an illiquid spot market.
Central bank stated, Mozal Aluminium smelter accounted for $1.1 billion in exports in 2023, making it Mozambique’s third-largest export. About 28% of South32’s total aluminum production in fiscal 2024 came from the smelter.
Regional trade is also being impacted by the situation. A crucial transit point for South African chrome exports headed for the port of Maputo, the primary border crossing with Mozambique has been permanently closed by South Africa, a major trading partner.
