Mozal Shuts as Eskom Digs In, and the Power Utility Could Pay the Price

South32 has confirmed that its Mozal aluminium smelter in Mozambique will be placed on care and maintenance from mid-March after failing to secure a new electricity supply agreement. Talks involving Eskom and regional power producers collapsed over pricing and supply terms.

The shutdown threatens thousands of jobs and could dent Eskom’s regional revenues. Mozambique’s government says it is still pushing for a solution, but without a breakthrough, one of southern Africa’s largest industrial operations will go dark.