The Mozambican Government says it is doing “everything necessary” to ensure the continued operation of the Mozal aluminium smelter, owned by Australia's South32. The statement was made on Monday by the Minister of Mineral Resources and Energy, Estevão Pale, on the sidelines of a conference held in Cape Town.
Speaking to journalists, the minister stressed the Executive's commitment to avoiding the closure of one of the country's largest industrial plants. In December, South32 announced its intention to place Mozal into care and maintenance from March, a decision that would entail an extraordinary cost of around 60 million dollars, after it proved impossible to reach an energy agreement with the State.
The company and the Mozambican authorities, together with electricity suppliers, have been engaged in protracted negotiations for several years, in an attempt to secure viable conditions for the operation of a facility with a very high energy consumption. The outcome of these talks is considered crucial not only for the future of Mozal, but also for the stability of the country's industrial sector and exports.
