REG - South32 Limited - Mozal Aluminium Update

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RNS Number : 3399V  South32 Limited  14 August 2025

 

 

 

 

14 August 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 Mozal Aluminium (Mozal).

Further to our announcement released 14 July 2025, we have continued to engage
with the Government of the Republic of Mozambique, Hidroeléctrica de Cahora
Bassa (HCB) and Eskom on securing sufficient and affordable electricity supply
to enable Mozal to operate beyond March 2026, when the current agreement
expires.

These engagements do not provide confidence that Mozal will secure sufficient
and affordable electricity beyond March 2026. As a result, we will limit
investment in Mozal, stopping pot relining and standing down associated
contractors starting this month.  Without access to sufficient and affordable
electricity, we expect that Mozal will be placed on care and maintenance at
the end of the current agreement.

Mozal's FY26 production is expected to be approximately 240kt (South32 share)
reflecting fewer pots in operation as we stop pot relining and operations
continuing only to March 2026.

We have completed our previously announced carrying value assessment of Mozal
given the increased uncertainty regarding future electricity supply. As a
result, we will recognise an impairment of US$372M (same amount post tax) for
Mozal with our FY25 financial results, which includes US$339M of property,
plant and equipment, US$7M of intangible assets and US$26M of raw materials
and consumables. The impairment reflects our assessment that the most likely
scenario is for Mozal to operate until the end of the current electricity
supply agreement and be placed on care and maintenance in March 2026. The
impairment reduces Mozal's carrying value to US$68M, with the impairment to be
excluded from FY25 Underlying earnings, in accordance with our accounting
policies.

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 August 2025

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