Mozambique's post-election protests hit South32 plant, chrome exports (updated)
10/12/2024 11:35
(Adds impact on South African miners from paragraph 5)
JOHANNESBURG, Dec 10 (Reuters) - South32 S32.AX has
withdrawn its output forecast for its Mozal Aluminium smelter in
Mozambique amid post-election civil unrest, the Australian
company said on Tuesday.
October's disputed election results sparked protests from
opposition supporters and there has been escalating violence
since.
South32, which has a 63.7% stake in the Mozal Aluminium
smelter, said the unrest had led to road blockages that have
hampered the delivery of raw materials to the plant.
It had previously estimated output of 360 kilotonnes from
the smelter this fiscal year. The project contributed about 28%
of South32's total aluminium output in fiscal 2024.
South African mining companies that ship minerals including
chrome through the port of Maputo in Mozambique have also been
hit by the unrest, which has on some days led to the closure of
the main border between the neighbouring countries.
South African companies have grown increasingly reliant on
routing cargo via the Maputo port as state-owned logistics group
Transnet struggles to provide adequate freight rail and port
services.
A spokesperson for miner Tharisa THST.L , which ships
chrome via Maputo, told Reuters that the company had been
affected by the latest border closure.
"It's a significant amount of trucks that we have on the
road," said Ilja Graulich, adding that Tharisa may consider
declaring a force majeure to its customers if the latest border
closure is prolonged.
(Reporting by Felix Njini in Johannesburg and Sherin Sunny in
Bengaluru. Editing by Savio D'Souza and Mark Potter)
((Sherin.Sunny@thomsonreuters.com;))