REG - South32 Limited - Mozal Aluminium Update

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RNS Number : 7612L  South32 Limited  16 December 2025

 

 

 

16 December 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).

We have continued to engage with the Government of the Republic of Mozambique,
Hidroeléctrica de Cahora Bassa (HCB) and Eskom to seek sufficient and
affordable electricity supply for Mozal beyond March 2026, when the current
agreement expires.

Despite these efforts, a new electricity supply agreement has not been secured
and Mozal will be placed on care and maintenance on or around 15 March 2026.
Accordingly, raw materials required to sustain operations beyond March 2026
have not been procured.

South32 Chief Executive Officer, Graham Kerr, said: "Throughout our
engagements we emphasised that Mozal's ability to continue operating depended
on securing sufficient electricity at a price which allows the smelter to
remain internationally competitive.

"Unfortunately, the parties remained deadlocked on an appropriate electricity
price, which was exacerbated by ongoing drought conditions affecting
electricity supply from HCB. We must now turn our attention to safely placing
the smelter on care and maintenance from March 2026.

"We understand today's announcement is difficult for our team at Mozal and we
are focused on supporting them through this process. We also acknowledge the
impact this will have on our suppliers, customers, communities and other
stakeholders, and we are engaging with them as we transition from operations
to care and maintenance in the coming months."

Mozal's FY26 production guidance for the period to March 2026 is unchanged at
240kt (South32 share).

One-off costs to place Mozal into care and maintenance, including employee
separation costs and termination of contracting arrangements, are expected to
be approximately US$60M (100% basis). Ongoing annual care and maintenance
costs are expected to be approximately US$5M (100% basis).

The alumina supplied from our Worsley Alumina refinery to Mozal will be sold
to third party customers. South32 has secured options with customers to sell
this alumina at index-linked prices.

About Mozal Aluminium

Mozal Aluminium is located near Maputo, Mozambique. The smelter produces
high-quality, primary aluminium for domestic and export markets. 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
16 December 2025

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