The National Union of Workers in the Metallurgical, Metalworking, and Energy Industries (SINTIME) reported that approximately 5,000 workers from service providers are still awaiting compensation following the suspension of the Mozal aluminum smelter, located in Maputo Province, Mozambique.
Quoted by Radio Mozambique, SINTIME Secretary-General Américo Macamo explained that the workers in question are employed by 20 companies based in the district of Boane, adding that these entities do not have collective bargaining agreements with their workforce.
In January, he expressed “deep concern” regarding the suspension of the smelter, warning of serious social and economic consequences. “We believe that Mozal is crucial to Mozambique’s economic development, as one of the country’s main industries, serving as a pillar of exports with about 30% of exported products and a major employer. We are talking about thousands of direct and indirect jobs,” the organization explained.
The union, which represents approximately 22,600 workers, stated at the time that Mozal is a vital driver of the country’s economy and industry. “Economic independence is an overarching and ongoing goal that stems from transforming the country’s structure through domestic production, creating jobs and reducing poverty.”
Mozal, Mozambique’s largest aluminum smelter, suspended operations on March 15, entering a maintenance and conservation phase after failing to reach an agreement for the supply of electricity at competitive prices. The decision, announced by majority shareholder South32, marked the end of 25 years of continuous operation for one of the country’s major industrial megaprojects.
The shutdown resulted in estimated costs of approximately $60 million, including expenses related to contract terminations, while maintaining the facility is expected to cost approximately $5 million per year. The company justified the decision by citing the inability to secure sufficient energy at sustainable prices, following several years of negotiations with the Mozambican government, Eskom, and other stakeholders in the energy sector.
With significant weight in the national economy, Mozal contributed substantially to the manufacturing industry and GDP, in addition to supporting more than 1,000 direct jobs and about 4,000 indirect jobs. Its shutdown is already beginning to have a ripple effect, with at least five companies closing operations in the Beluluane Industrial Park and others considering suspending activities, given their heavy reliance on the smelter.
Meanwhile, the Australian company South32 stated that the shutdown of the Mozal aluminum smelter “is neither definitive nor constitutes an abandonment of the business,” clarifying that the measure—which resulted in severance pay for 1,100 direct employees of the company due to a lack of consensus on the renewal of the energy supply contract—is merely a temporary operational measure for conservation and maintenance.
The position is set forth in a reply letter sent to the Attorney General’s Office (PGR), after the Public Prosecutor’s Office stated that it had found irregularities in the process of suspending Mozal’s operations, arguing that the procedure was carried out unilaterally by the majority shareholder, South 32, rather than through a resolution at a general meeting, which would have included other shareholders.
