MAPUTO, Feb 10 – Mozambique’s government is working to keep South32’s Mozal aluminium smelter operating as negotiations continue over electricity supply, the country’s mineral resources and energy minister said.
Minister Estevao Pale said on Monday that the government was doing everything required to ensure the smelter remains open.
In December, Australia based miner South32 had said that it would place the Mozal smelter under care and maintenance by March after failing to secure a new power agreement with the company saying the move would result in a one off cost of about $60 million.
The Mozal plant, located near Maputo, is one of Mozambique’s largest industrial facilities and a major electricity consumer. South32 has held talks with the government and power suppliers for several years to secure a long term energy deal, but no agreement has been reached so far.
