Mozambique’s aluminum export revenues hit a peak of $1.3 billion in 2025, shortly before the shutdown of Mozal, the country’s largest industrial facility. Fully dependent on this smelter, the sector’s performance reflects significant growth, amid a year marked by major structural changes.
According to data compiled by Lusa from the latest Bank of Mozambique (BdM) report, the value recorded between January and December 2025 represents an increase of nearly 20% compared to $1.1 billion in 2024. This marks a notable development in national exports, strengthening aluminum’s role in the economy.
The central bank had previously explained that the growth in aluminum bar exports was “driven both by higher prices and increased export volumes.” These two factors were decisive, together sustaining the sector’s positive performance throughout the year.
Despite this growth, Australian company South32 confirmed on March 16 that Mozal entered a maintenance and conservation period starting the previous day, resulting in production suspension. The company expects to incur costs of €52.4 million due to this decision, including severance payments.
“In the past six years, we have worked extensively with the Government of the Republic of Mozambique, Eskom, and other stakeholders, but we were unable to secure sufficient and affordable energy supply for Mozal beyond March 2026,” said South32 CEO Graham Kerr. With production halted, the company anticipates a total cost of €52.4 million, including contract terminations. This figure reflects the direct impact of the shutdown, while the annual maintenance of the unit alone is expected to cost about $5 million.
“Although this is not the outcome we wanted, we take pride in Mozal’s history and the significant contribution it has made to the local community and the Mozambican economy over its 25 years of operation,” Kerr added, highlighting the smelter’s historic role in the country.
The closure has already begun to affect businesses linked to Mozal. At least five companies shut down before the production suspension, and about 25 suppliers are considering doing the same, according to Mozparks CEO Onório Manuel.
“We have been informed that most of these companies are considering taking similar measures,” said Manuel, warning of a “negative” impact on the growth of the Beluluane Industrial Park and noting that GDP could be affected, as Mozal accounted for nearly half of the manufacturing sector’s contribution.
Source: Diário Económico
