South32 says over the past few days, road blockages have largely cleared and it has been able to safely transport alumina from port to Mozal Aluminium.
On December 10, the group withdrew production guidance for Mozal Aluminium as escalating civil unrest in Mozambique affected the transport of raw materials to the operation.
The group implemented contingency plans as the transport of raw materials to the operation was hit by road blockages.
South32 said its workforce was safe and there had been no security incidents at Mozal Aluminium.
“We expect to rebuild alumina stocks at the smelter over the coming days if trucking conditions remain favourable,” the diversified mining and metals group said in a statement on Thursday.
While the situation has improved, any escalation in civil unrest, including following the announcement of the election results by the Mozambique Constitutional Council, expected on December 23, had the potential to affect its critical trucking activity and operations at Mozal Aluminium, South32 said.
“To preserve raw materials and maintain operational stability, we have reduced amperage to the potlines. If trucking of raw materials to the smelter is disrupted on an ongoing basis, we may need to consider further mitigating action, including potential curtailment of potlines at Mozal Aluminium.
“If this were to occur, the supply of alumina from our Worsley Alumina refinery would be sold to third party customers at market prices. Mozal Aluminium has continued to export aluminium to customers during this period,” South32 said.
Earlier this week, Reuters reported that Mozambique’s 2024 economic growth was likely to be revised down from a previous forecast of 4.3% amid post-election civil unrest and the effects of Cyclone Chido, citing an International Monetary Fund official.
In October, Daniel Chapo, the candidate of Mozambique’s governing party, Frelimo, was declared winner of the presidential election that opposition parties say was marred by voting irregularities. The disputed election results sparked protests from opposition supporters and there has been more violence since. The unrest affected business operations, including for mining companies, and at times led to the closure of key trade corridors, Reuters reported.
Business Day reported earlier this month that at least 103 people were killed in the antigovernment protests, according to the Mozambican election monitoring group Plataforma Eleitoral Decide.
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