South32 Resumes Alumina Delivery to Mozal Smelter Amid Mozambique Unrest

South32

Australian mining giant South32 has resumed alumina deliveries to its Mozal aluminium smelter in Mozambique following the easing of road blockages caused by civil unrest. The company announced on December 18 that it has restarted transportation as the situation stabilizes. This comes after riots and road disruptions erupted in Mozambique’s major cities due to allegations of electoral fraud in the October presidential elections.

The unrest had temporarily halted the supply of raw materials from ports to the smelter, prompting South32 to withdraw its FY2025 production guidance for the Mozal facility. However, aluminium exports from the smelter to customers have reportedly remained stable during this period. Over the coming days, South32 aims to rebuild its alumina stockpile at the smelter, assuming the political situation remains calm.

Potential Risks and Contingency Plans

The outlook for uninterrupted operations remains uncertain as Mozambique’s Constitutional Council is expected to announce the election results on December 23. Any resurgence in unrest could disrupt raw material deliveries once again.

If logistical issues persist, South32 may consider scaling back operations at the Mozal smelter. In such a scenario, the company plans to redirect alumina from its Worsley Alumina refinery in Australia to third-party buyers at prevailing market prices. This contingency highlights South32’s efforts to mitigate risks and maintain its operational and financial stability amid external challenges.

Stable Aluminium Exports Despite Unrest

Despite the disruptions to raw material supplies, aluminium exports from the Mozal smelter have remained consistent. This reflects the company’s commitment to fulfilling customer contracts even amid adverse conditions. The Mozal smelter, a key asset in South32’s portfolio, is strategically significant as a supplier of aluminium for global markets.