Fábrica de Alumínio Mozal
Maputo, 16 Jun (AIM) – South Africa’s Industrial Development Corporation (IDC) is weighing its options regarding the acquisition of the Mozal aluminium smelter, on the outskirts of Maputo.
Mozal is the largest company in Mozambique, but its majority shareholder, the Australian group South32, says it cannot continue aluminium production at the current cost of electricity, which, as for any aluminium smelter, is the main input. The two billion US dollar facility requires around 950MW of power.
The company has been paralyzed since last March due to a dispute between the Mozambican government and the South32. The parts did not reach any agreement regarding electricity prices.
IDC is now weighing options to buy South32’s 63.7 stake or pursue an alternative ownership structure to revive the operation, which was placed in care and maintenance.
According to South African outlet “Business Day”, the IDC, which holds a 32.48 percent stake in Mozal, is seeking independent commercial and technical advice on three options, namely “acquiring South32’s shares through pre-emptive rights or a direct offer; facilitating an alternative shareholding structure involving other shareholders or strategic partners; and Selling down its own stake and exiting the investment.”
“(..) the IDC requires independent, comprehensive assessment and investment-grade advice to determine whether Mozal can be returned to sustainable operations and whether an affordable and sustainable electricity supply solution can be secured”, reads IDC Request for Proposal (RFP), which is scheduled to close on 9 July 2026.
A key focus of the assessment is the development of viable electricity supply options to support a restart of operations.
“These include interim grid supply arrangements, self-generation, renewable energy and hybrid solutions, wheeling arrangements, and a proposed gas-to-power project adjacent to the smelter. The adviser will also evaluate technical feasibility, cost structures, regulatory approvals and implementation timelines for each energy pathway”, reads the document.
Mozal’s shareholder structure consists of South32 (63.7 percent), South Africa’s Industrial Development Corporation (32.48 percent) and the Mozambican government (3.9 percent).
Mozal accounts for around three percent of Mozambique’s Gross Domestic Product (GDP) and was Mozambique’s single largest industrial private employer, providing over 20,000 jobs over the past 25 years.
Mozal is the largest factory in Mozambique and is a key part of the government’s industrialization strategy. The factory employed 1,100 people directly, and about 5,000 indirectly. Mozal’s shutdown had also wider implications, including for South African power utility Eskom, which reportedly earned about R5 billion a year from electricity sales to the smelter.
Am/
