The National Union of Workers in the Metallurgical, Metalworking, and Energy Industries (SINTIME) insists that approximately 3,000 workers from service provider companies are still awaiting compensation following the suspension of the Mozal aluminum smelter, located in Maputo Province, Mozambique.
Quoted by Lusa, SINTIME Secretary-General Américo Macamo explained that the union is mediating negotiations to avoid conflicts, adding that, of the total of 20 companies that provided services to Mozal, some have also closed or reduced operations, with only eight having fully paid their workers’ entitlements.
“It must be emphasized that, among these 20 companies supplying Mozal, some have already fulfilled their obligations; however, there are others that, unfortunately, have not yet been able to compensate their workers due to the various difficulties they are facing. The institutions were taken by surprise by this sudden interruption of the project’s activities,” he stated.
The official stated that Mozal had paid all its employees, in accordance with the guarantee provided before the plant entered maintenance, and that it was now solely up to the subcontractors to fully comply with Mozambican labor laws. “We ask for calm and for the most advisable courses of action to be identified, emphasizing that force does not always resolve matters.”
Américo Macamo did not provide details on the amounts owed or the companies involved, noting that some affected parties had also expressed the intention to destroy the infrastructure of the debtor companies. “We advised that this would not be a viable course of action, as the aluminum smelter will reopen, even though we are not in a position to discuss timelines at this time.”
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 ones. The shutdown is already beginning to produce 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 Mozal’s shutdown “is neither permanent nor constitutes an abandonment of the business,” clarifying that the measure—which resulted in severance pay for 1,100 direct employees due to a lack of consensus on renewing the power supply contract—is merely a temporary operational measure for conservation and maintenance.
The position is set forth in a response letter sent to the Attorney General’s Office (PGR) after the Public Prosecutor’s Office identified irregularities in the process of suspending Mozal’s operations, arguing that the procedure was carried out unilaterally by the majority shareholder, South32, rather than resulting from a resolution passed at a general meeting with the other shareholders.
