South32 pulls Mozambique smelter forecast amid unrest

Australian miner South32 (ASX: S32) has withdrawn production guidance for its aluminum smelter in Mozambique amid widespread and deadly unrest following the country’s disputed presidential election.The protests erupted in the wake of October’s election, where opposition parties accused Frelimo, Mozambique’s ruling party since independence in 1975, of rigging the results. The unrest has claimed at least 100 lives, predominantly demonstrators killed during clashes with police. Hundreds have been injured, and thousands arrested.South32, which holds a 63.7% stake in the smelter, said road blockages caused by the protests are disrupting the transport of raw materials to the facility. The company confirmed that its workforce remains safe, and there have been no direct security incidents at the plant. Civilians Seize Military Armored Vehicle: Mozambique Protests Reach Unprecedented Levels of Chaos #MozambiqueCrisis #SocialJustice pic.twitter.com/SRwdMElROZ— Prof. Adriano Nuvunga (@adriano_nuvunga) December 9, 2024The Mozal Aluminum smelter, located about 20 km west of the capital, Maputo, had been forecast to produce 360,000 tons of aluminum in the financial year ending June 2025. However, the unrest has hindered operations, with protests over the weekend resulting in injuries near the capital and the shutdown of two nearby power stations.South32 noted it has implemented contingency plans to mitigate operational impacts, but did not disclose specifics.Aluminum is Mozambique’s third-largest export earner, with Mozal accounting for $1.1 billion of exports in 2023, according to the central bank. The smelter contributed about 28% of South32’s total aluminium output in fiscal 2024.The crisis is spilling across borders. South Africa, a key trading partner, has indefinitely closed its main border crossing with Mozambique—a critical transit point for South African chrome exports headed to Maputo’s port.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com