South32 has implemented contingency plans for its Mozal Aluminium smelter in Mozambique.
Amid ongoing post-election unrest, the Australian diversified mining and metals company has withdrawn its production forecast for the country, the company announced on Tuesday.
Disputed poll results in Mozambique last month triggered protests by opposition supporters, leading to escalating violence in the country, Reuters reports.
South32, which holds a 63.7% stake in the Mozal Aluminium smelter, stated that the unrest has disrupted the transportation of raw materials to its operations.
The company had previously forecasted production of 360 kilotonnes from the smelter for this financial year.
The project accounted for approximately 28% of South32’s total aluminium output in the 2024 financial year.
On the day, the company’s shares closed 2.2% higher at 3.68 Australian dollars.
The remaining stake in the smelter is owned by the Industrial Development Corporation of South Africa and the Mozambican government.
It is unclear what South32's contingency plans are at this stage.
