Africa’s Second-Largest Aluminum Smelter at Risk of Shutdown

Africa’s second-biggest aluminum smelter may close in March after operator South32 Ltd. is yet to secure a new electricity supply agreement before the current one expires. The company’s shares plunged.

The Mozal plant, located outside Mozambique’s capital Maputo, will no longer be viable under a proposed new tariff set to replace the existing one early next year, the company said in a letter to affected parties seen by Bloomberg and verified by the company.

“As it stands, negotiations are deadlocked,” Rob Jackson, vice president of supply at South32, said in the letter. “Given the impasse, the most likely scenario is ...