South32, an Australian mining and metals company, confirmed its Mozal aluminum plant in Mozambique will enter care and maintenance next month. A severe drought impacted hydroelectric power supplies, and the miner failed to reach an affordable deal with South African utility Eskom.

CEO Graham Kerr said that supply shortages in pitch and coke make the shutdown unavoidable, affecting more than 4,000 workers. Therefore, alumina intended for the Mozal smelter will likely be diverted to the Middle East.

While the group's earnings for the half-year ended December 31 rose to US$435 million, the company lowered production guidance for its Brazil aluminum segment. Output estimates fell by 15.6% to 135,000 tons this financial year and decreased by 15% to 140,000 tons for the next year. Operators in Brazil are currently working to stabilize all three potlines to improve performance.