The National Union of Workers in the Metallurgical, Metalworking and Energy Industry (SINTIME) expressed “deep concern” on Friday, January 16, regarding the suspension of operations at the Mozal aluminum smelter, located in Maputo Province, warning of serious social and economic consequences.
“We understand that Mozal is crucial to Mozambique’s economic development, as one of the country’s main industries, a pillar of exports accounting for around 30% of exported products, and a major employer. We are talking about thousands of direct and indirect jobs,” explained SINTIME’s Secretary-General, Américo Macamo.
Quoted by Lusa, the union leader said that the organization represents around 22,600 professionals and that Mozal is a vital lever for the country’s economy and industry. “Economic independence is a cross-cutting and continuous goal that results from transforming the country’s structure through domestic production, generating employment and reducing poverty.”
“The union therefore appeals for and proposes that resource negotiations be strengthened through the inclusion of all Mozal shareholders—namely South32, the Government of Mozambique, South Africa’s IDC and Mitsubishi Corporation—as well as the Confederation of Economic Associations, as active and legitimate participants in these discussions, including the union itself, with a view to promoting and defending the legally protected rights and interests of workers,” he concluded.
Last year, the government said it was closely monitoring the Mozal situation following the announcement of the suspension of activities due to the lack of a new electricity supply agreement. According to the spokesperson for the Council of Ministers, Inocêncio Impissa, a technical team is working with the company and the relevant entities to avoid negative impacts on workers, suppliers and other stakeholders. “There is a team doing its work with Mozal and the entities involved to ensure that the company’s future is not harmful to any of the parties,” said Inocêncio Impissa.
These statements followed a communiqué issued by South32, the Australian company that owns Mozal, announcing that the aluminum smelter will be placed under a “care and maintenance” regime from March 15, 2026, if a new electricity supply contract is not secured.
“A new electricity supply agreement has not been guaranteed and, therefore, Mozal will be placed under ‘care and maintenance’ around March 15, 2026,” the company said in the document sent to the media, adding that “the raw materials necessary to sustain operations beyond March 2026 have not been acquired.”
According to South32, negotiations are ongoing with the Government, Hidroeléctrica de Cahora Bassa (HCB) and South Africa’s Eskom, with the aim of ensuring sufficient electricity supply at competitive prices after the current contract expires.
Without providing details on the stage of negotiations, Inocêncio Impissa clarified that any decision will be made public at the appropriate time. “When the outcome is effectively concluded, it will be announced through the Council of Ministers or by the Ministry of Mineral Resources and Energy, which is following the substantive issues with Mozal,” he explained.
Source: Diário Económico
