The government has advocated for negotiations to prevent the Mozal aluminum smelter—the country’s largest industry, set to suspend operations from Sunday, March 15—from coming to a complete stop, given its scale and importance.
“It is always good to have Mozal or another major industry of equal or greater size. Even so, the Mozal plant, which has been winding down its activities recently, would be welcomed by the government if it continued operating,” said government spokesperson Inocêncio Impissa during a press meeting on Friday (13) in Maputo.
Impissa noted that the government has no information about potential new operators for Mozal—the largest smelter in Africa—following the suspension decision by the Australian company South32, which manages the plant. The government’s objective, he emphasized, is that “the facility should not remain idle” and can assist sectorally in negotiations with new investors.
“The Mozal owner must first show interest in transferring the operation or the company, shares, or other forms of responsibility transition,” he explained.
At least five companies have already closed, and dozens more could halt activities in the Beluluane Industrial Park, southern Mozambique, due to Mozal’s suspension, according to Onório Manuel, head of the park, the country’s largest industrial complex. “We estimate around 25 companies supply goods and services to Mozal. Most are considering action in line with Mozal’s shutdown,” he said.
With Mozal entering maintenance and conservation mode—employing over 1,000 direct and 4,000 indirect workers—more companies in its supply chain are expected to close, particularly those tied directly to production and essential shutdown processes.
These closures put about 4,000 jobs at risk in neighboring factories linked to Mozal’s value chain, not counting Mozal itself.
stated that the energy tariff offered to Mozal is “completely unsustainable,” prompting the closure but leaving open the possibility of reactivating operations if energy conditions improve.
In a recent call with Australian investors, CEO Graham Kerr explained that the only formal energy offer from Eskom was nearly $100 per MWh, while less than 1% of smelters outside China pay above $50 per MWh.
Source: Diário Económico
