South32, an Australian mining and metals company, has announced a $372 million impairment on its Mozal aluminum smelter in Mozambique. The company warned it plans to idle the smelter if an affordable power supply agreement is not secured before the current contract expires in March 2026.

South32 is currently negotiating with the Mozambican government, power generator Hidroeléctrica de Cahora Bassa (HCB), and South African power utility Eskom.

HCB is the primary power supplier of the Mozal smelter, with Eskom providing a supplementary source.

South32 expects its share of Mozal's output to drop to about 240,000 tons in the fiscal year 2026, falling from 355,000 tons in the fiscal year 2025.