South32 Withdraws Production Guidance for Mozal Aluminium Amid Mozambique Unrest

South32

South32 has suspended its production guidance for the Mozal Aluminium smelter in Mozambique due to disruptions caused by ongoing civil unrest, affecting the transport of raw materials.

Production Challenges at Mozal Aluminium

Australian mining giant South32 Limited has withdrawn its production guidance for the Mozal Aluminium smelter, citing disruptions caused by riots and road blockages in Mozambique. The unrest, which began after allegations of electoral fraud in the October presidential election, has spread across major cities, including the capital Maputo, where the smelter is located, 20km to the west.

The protests have disrupted the transport of critical raw materials to the Mozal facility, creating significant operational challenges. While South32 has implemented contingency plans to mitigate the impact, the company has not disclosed further details regarding these measures.

Impact on Aluminium Production

Prior to these disruptions, Mozal Aluminium was projected to produce 360,000 tonnes of aluminium for the 2025 financial year. The withdrawal of guidance reflects the uncertainty surrounding the stability of operations at the smelter amid ongoing unrest. Mozal Aluminium, a key player in Mozambique’s industrial sector, significantly contributes to both local employment and the global aluminium market.

Broader Context and Regional Implications

The unrest in Mozambique, sparked by allegations of electoral fraud, has raised concerns about the broader stability of the region’s economic activities. For the aluminium industry, disruptions at a major smelter like Mozal Aluminium can ripple through the global supply chain, potentially tightening supply in an already volatile market.

South32 has emphasized its commitment to ensuring the safety of its workforce and securing its operations, but the situation underscores the challenges of operating in politically unstable regions. As the company monitors developments, the resolution of the unrest will be critical for the resumption of normal operations and the restoration of production targets.