South32 Limited (ASX:S32) Provides Update on Mozal Aluminium
Electricity Supply Uncertainty
South32 Limited is working to secure a new electricity supply agreement for the Mozal Aluminium smelter beyond March 2026. However, no affordable tariff agreement has been reached, and drought conditions in Mozambique may impact hydro-electric power generation, increasing uncertainty about future electricity supply to Mozal.
Financial Implications
The company expects to recognise an impairment expense in FY25 results due to the uncertainty around electricity supply. Additionally, given the operational uncertainties, production guidance for FY26 is under review.
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