The opposition party Democratic Movement of Mozambique (MDM) defended, on Wednesday, 17 December, the intensification of dialogue between the Government and the aluminium smelter Mozal, with a view to avoiding the suspension of its activities in March 2026, warning of the potential social and economic impacts of such a shutdown.
“The MDM believes that the Government should negotiate the extension of the contract, in order to find a more consistent solution that guarantees stability for the thousands of Mozambicans who will be affected by this news of the company’s closure,” said Fernando Bismarque, spokesperson for the parliamentary caucus.
Speaking at a press conference in Maputo, Bismarque stated that the suspension of operations would have a “major impact on service providers and on the company’s workers, who will be left adrift,” in addition to affecting investor confidence and Mozambique’s international image.
Quoted by Lusa, Fernando Bismarque said that the country “cannot afford to see Mozal close its doors and, therefore, the party argues that the Executive must identify a well-studied, structured and non-emotional solution to ensure that the company maintains its operations.”
“We reinforce the need to find a period of at least one year so that, together, we can identify ways to resolve this impasse which, in our view, cannot be seen as mere blackmail; it is necessary to assess the social dimension of the decisions,” he concluded.
On Tuesday (16), the Government assured that it is closely monitoring the situation at Mozal, 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, there is a technical team 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 future of the company is not detrimental to any of the parties,” said Inocêncio Impissa.
The statements follow a communiqué released by South32, the Australian company that owns Mozal, announcing that the aluminium smelter will be placed under a “care and maintenance” regime from 15 March 2026, should a new power supply contract not be secured.
“A new electricity supply agreement has not been secured and, therefore, Mozal will be placed under ‘care and maintenance’ around 15 March 2026,” the company states in the document sent to the media, adding that “the raw materials required to sustain operations beyond March 2026 have not been purchased.”
According to South32, negotiations are ongoing with the Government, Hidroeléctrica de Cahora Bassa (HCB) and South Africa’s Eskom, with a view to securing sufficient power 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 monitoring the substantive issues with Mozal,” he explained.
