South32 shares slide on Mozal impairment warning amid power supply concerns
Investing.com-- South32 Ltd (ASX:S32) shares slid on Monday after the miner flagged an impairment charge tied to its Mozal aluminium smelter in Mozambique, citing uncertainty over future electricity supply.
The company said prolonged drought and failed negotiations for an affordable power deal with hydro supplier Hidroelectrica de Cahora Bassa (HCB) threaten operations beyond March 2026.
Mozal relies on HCB and backup power from South Africa’s Eskom, but tariff disputes and climate risks have raised doubts about long-term viability, the company said.
Shares of the company fell 5% to A$2.955 as of 03:25 GMT.
South32, which owns 63.7% of Mozal, warned the impairment expense would dent FY25 results, with the amount still under assessment. The smelter contributes 3% of Mozambique’s GDP and supports thousands of jobs.
Mozal’s production guidance for FY26 is under review, the company said.
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