South32 Limited (S32.L,S32.AX, SOUHY) announced that it will recognize a non-cash impairment charge of US$372 million related to its Mozal Aluminium operation in Mozambique, to be reflected in its fiscal year 2025 financial results. This includes US$339 million in property, plant and equipment, US$7 million in intangible assets, and US$26 million in raw materials and consumables. Following this adjustment, Mozal's carrying value will be reduced to US$68 million.
This decision follows a comprehensive reassessment of Mozal's future viability, prompted by ongoing uncertainty around electricity supply beyond March 2026, when the current agreement expires. Despite continued discussions with the Government of Mozambique, Hidroeléctrica de Cahora Bassa (HCB), and Eskom, there remains limited assurance that sufficient and affordable power will be secured to sustain operations past that date.
South32 noted that it will begin scaling back investment in Mozal, including the immediate suspension of pot relining activities and the phased stand-down of related contractors. Production for fiscal year 2026 is now expected to be approximately 240kt (South32 share), reflecting reduced operational capacity and the assumption that operations will cease in March 2026.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.