REG - South32 Limited - Mozal Aluminium Update

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RNS Number : 8988Q  South32 Limited  14 July 2025

 

 

 

14 July 2025

South32 Limited

(Incorporated in Australia under the Corporations Act 2001 (Cth))

(ACN 093 732 597)

ASX / LSE / JSE Share Code: S32; ADR: SOUHY

ISIN: AU000000S320

south32.net

 

 

 

MOZAL ALUMINIUM UPDATE

 

South32 Limited (ASX / LSE / JSE: S32; ADR: SOUHY) (South32) provides the
following update regarding our ongoing work to secure a new electricity supply
agreement for the Mozal Aluminium smelter (Mozal), and an associated
impairment expense that will be recognised with our FY25 results.

Electricity is supplied to Mozal under an agreement due to expire in March
2026. Historically, the majority of electricity for Mozal has been generated
in Mozambique by a hydro-electric power generator, Hidroeléctrica de Cahora
Bassa (HCB). HCB is majority owned by the Government of the Republic of
Mozambique. Under the agreement, electricity from Eskom is supplied to Mozal
when HCB is unable to meet all of Mozal's electricity requirements.

We have been working with the Government of the Republic of Mozambique, HCB
and Eskom for the last six years to secure electricity supply to Mozal beyond
March 2026. To date, Mozal has been unable to agree an affordable electricity
price tariff. HCB has also recently indicated that drought conditions have
the potential to impact its electricity generation and capacity to deliver
sufficient hydro-electric power to Mozal. These factors have resulted in
increased uncertainty regarding future electricity supply to Mozal.

We are continuing to engage with the Government of the Republic of Mozambique,
HCB and Eskom on securing affordable electricity supply to enable Mozal to
operate beyond March 2026 and maintain its substantial contribution to the
economy of Mozambique.

We are assessing the carrying value of Mozal given the increased uncertainty
regarding future electricity supply and expect to recognise an impairment
expense in our FY25 results. We will provide the quantum of the impairment
expense when this assessment is completed.

Given the uncertainty of operating beyond March 2026, FY26 production guidance
for Mozal is under review.

About Mozal Aluminium

Mozal Aluminium is located near Maputo, Mozambique. The smelter produces
high-quality, primary aluminium for domestic and export markets. Mozal
contributes approximately three percent of national gross domestic product and
is a significant industrial employer, providing jobs for thousands of
employees and contractors.

South32 holds 63.7% of Mozal, the Industrial Development Corporation of South
Africa Limited holds 32.4%, and the Government of the Republic of Mozambique
holds 3.9%.

 

About us

Our purpose is to make a difference by developing natural resources, improving
people's lives now and for generations to come. We are trusted by our owners
and partners to realise the potential of their resources. We produce minerals
and metals critical to the world's energy transition from operations across
the Americas, Australia and Southern Africa and we are discovering and
responsibly developing our next generation of mines. We aspire to leave a
positive legacy and build meaningful relationships with our partners and
communities to create brighter futures together.

 Investor Relations                                                         Media Relations
 Ben Baker                                                                  Jamie Macdonald

T          +61 8 9324 9363
T          +61 8 9324 9000

M        +61 403 763 086
M        +61 408 925 140

E          Ben.Baker@south32.net (mailto:Ben.Baker@south32.net)
E          Jamie.Macdonald@south32.net
                                                                            (mailto:Jamie.Macdonald@south32.net)

Further information on South32 can be found at www.south32.net
(http://www.south32.net) .

Approved for release to the market by Graham Kerr, Chief Executive Officer

JSE Sponsor: The Standard Bank of South Africa Limited
14 July 2025

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