The Mozambique Workers’ Organization – Trade Union (OTM-CS) has called for “dialogue and common sense” regarding the issue of the March suspension of the Mozal aluminum smelter, located in Maputo province, warning that it is important to maintain job stability and safeguard the more than 5,000 jobs at stake.
“We call for responsibility and constructive solutions that promote job stability, the continuity of economic activities, and trust between the parties involved, in the national interest,” the organization urged in a statement quoted by Lusa.
In the letter, the organization warns that the suspension of Mozal’s activities and those of its subsidiaries threatens around 1,100 direct jobs and more than 4,000 indirect jobs, severely affecting the social fabric and the national economy.
“To this end, OTM-CS affirms its position that the right to secure employment is constitutional and must be legal and fair, and therefore encourages an outcome based on dialogue, good faith, legality, and social justice, taking into account that no worker should be harmed or penalized,” it adds.
In this same position, the institution “urges that in resolving this conflict, labor rights, job security, and the economic stability of subsidiary companies that employ thousands of Mozambican citizens must be clearly and effectively safeguarded,” adding that both the government and Mozal should involve the unions in the negotiation process.
Last year, the government assured that it was closely monitoring the situation at Mozal after 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 entities involved to avoid negative impacts on workers, suppliers, and other stakeholders.
“There is a team working with Mozal and the entities involved to ensure that the future of the company is not detrimental to any of the parties,” said Inocêncio Impissa.
The statements followed a press release issued by South32, the Australian company that owns Mozal, announcing that the aluminum smelter will be placed on “care and maintenance” from March 15, 2026, if a new energy supply contract is not secured.
“A new electricity supply agreement has not been secured and, as a result, Mozal will be placed on ‘care and maintenance’ around March 15, 2026,” the company said in a statement sent to the media, adding that “the raw materials needed to sustain operations beyond March 2026 have not been procured.”
According to South32, negotiations are ongoing with the government, Hidroeléctrica de Cahora Bassa (HCB), and South Africa’s Eskom to secure sufficient power supply at competitive prices after the current contract expires.
Without giving 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 finalized, it will be announced through the Council of Ministers or the Ministry of Mineral Resources and Energy, which is monitoring substantive issues with Mozal,” he explained.
