Wednesday, December 11, 2024

Australia's South32 pulls Mozambique smelter forecast amid civil unrest

By ReutersDecember 10, 2024

The logo of Australian miner South32 can be seen at the venue of a media conference in Perth, Western Australia, November 18, 2015. REUTERS/David Gray/File Photo 

Dec 10 (Reuters) - Australia's South32 (S32.AX), opens new tab has implemented contingency plans for its Mozal Aluminium smelter in Mozambique and withdrawn its production forecast for the project due to the civil unrest in the southeast African country, the company said on Tuesday.

Last month's disputed election results in Mozambique sparked protests from opposition supporters and the country has been embroiled in escalating violence since then.
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South32, which has a 63.7% stake in the Mozal Aluminium smelter, said the unrest has impacted the transportation of raw materials to its operations.

It had previously estimated to produce 360 kilotonnes from the smelter this fiscal year. The project contributed about 28% of South32's total aluminium output in fiscal 2024.
The company's shares ended 2.2% higher at A$3.68 on the day.

The Industrial Development Corporation of South Africa and the Mozambique government own the remaining stake in the smelter.

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