South32 has withdrawn its output forecast for the Mozal Aluminium smelter in Mozambique due to ongoing civil unrest following the October elections.
Opposition supporters have sparked protests in response to the disputed election results, and the violence has been escalating in recent weeks.
South32, which holds a 63.7% stake in the smelter, reported significant disruption caused by road blockages that hindered the delivery of raw materials.
The company had previously anticipated production of 360 kilotonnes of aluminium this fiscal year, a vital source of revenue for the firm.
This smelter contributed 28% of South32’s total aluminium output in fiscal 2024, making the disruption a considerable setback.
The unrest has also affected South African miners, particularly those who export chrome through the port of Maputo in Mozambique.
Road closures and border blockages between Mozambique and South Africa have led to significant delays in shipping operations.
South African companies increasingly rely on the Maputo port due to ongoing issues with the country’s state-owned logistics group Transnet, which struggles with freight rail and port services.
Tharisa, a miner that ships chrome through the port, confirmed that it had been impacted by the latest border closure.
“If the closure continues, we may need to declare force majeure to our customers,” said Ilja Graulich, a spokesperson for the company.
The ongoing disruptions threaten to exacerbate the already strained trade relations between the two countries.
