South32 Alcoa Sale Skips Mozambique Smelter

MOZAMBIQUE · MINING

The Australian miner South32 has won shareholder approval to sell its aluminium business to Alcoa of the United States. The idle Mozal smelter near Maputo, Mozambique, is not part of the sale.

South32 shareholders approved the sale of the group’s aluminium assets to Alcoa Corporation at the annual meeting on Thursday, 15 October 2026. The deal is worth up to US$5.6 billion and leaves out Mozal, the aluminium smelter in Mozambique.

This report covers a decision of 15 October that Mozambican media highlighted on Friday, 23 October. No newer decision on the sale or on Mozal was found for 23 or 24 October.

What South32 Shareholders Approved

Shareholders voted on the sale at the annual meeting of South32, held on Thursday, 15 October 2026. Business Day of South Africa and Aluminium Today both report that the vote went in favour.

The sale covers five holdings that South32 listed in its ASX announcement of Wednesday, 1 July 2026. Alcoa announced the same deal on Tuesday, 30 June in the United States.

• Worsley Alumina refinery in Western Australia: 86% stake.
• Hillside aluminium smelter at Richards Bay, South Africa: 100%, including the idle Bayside site.
• MRN bauxite mine in Brazil: 33% stake.
• Alumar alumina refinery in Brazil: 36% stake.
• Alumar aluminium smelter in Brazil: 40% stake.

How the US$5.6 Billion Adds Up

The headline figure of up to US$5.6 billion is South32’s enterprise value, which counts debt and possible extra payments. South32 will receive US$3.1 billion in cash and US$1.0 billion in new Alcoa shares, about US$4.1 billion up front.

Alcoa’s release headlines US$4.1 billion paid up front and cites an enterprise value near US$4.7 billion including leases. South32’s materials and Alcoa’s filing add US$750 million of net debt and up to US$750 million of price-linked payments.

Alcoa will also assume more than US$1 billion of site clean-up liabilities, which South32 had set aside as provisions. South32 receives a ticking fee of 5% a year on the US$3.1 billion cash from the vote until closing.

Why Mozal Was Left Out

South32 stated in its ASX materials that “Mozal Aluminium is excluded from the Transaction” and that its divestment is under active consideration. The smelter was put on care and maintenance on Sunday, 15 March 2026, after years of failed talks on affordable power.

South32 said in March it expected about US$60 million of one-off costs and US$5 million a year for upkeep. Its then chief executive, Graham Kerr, said the outcome was not the one the company wanted.

Mozal produced 248,000 tonnes of aluminium in the year to 30 June 2026, down from 355,000 tonnes, Alcircle reports. Miningmx reported in February that the closure threatens more than 4,000 direct and indirect jobs.

Who Owns Mozal and What Happens Next

South32 holds 63.7% of Mozal and the Mozambican government holds 3.9% in preference shares. South Africa’s Industrial Development Corporation holds the rest, about 32%, though published figures range from 31.4% to 32.5%.

On Friday, 28 August 2026, Business Day reported talks with former shareholders on buying South32’s stake and restarting by year end. Its chief executive, Mmakgoshi Lekhethe, said South32 “is thinking of disposing of its stake in Mozal.”

Business Day describes Mozal as Mozambique’s largest employer and about 3% of its economy, with capacity of 320,000 tonnes a year. Lusa, the Portuguese news agency, reports that in June the corporation launched a tender for consultants to assess a purchase.

What Must Happen Before Closing

The vote was only one condition for the Alcoa deal. The ASX materials also list approvals from Australia’s investment board and competition regulator, the South African Reserve Bank and other competition authorities.

The partners in the Brazilian MRN mine hold pre-emptive rights, which let them buy that stake instead. Conditions must be met by Tuesday, 29 June 2027, or a later date the parties agree.

South32’s quarterly report, released on Monday, 19 October in Australia, says completion remains on track for the half year to June 2027. Alcoa gives the same timing as the first half of calendar 2027.

What It Means for US Readers

Alcoa is listed in New York as AA and will issue 17,008,960 new shares to South32, about 6% of its stock. It expects synergies worth about US$900 million and says the deal should lift earnings per share.

South32 plans to pass at least half of those shares, about US$500 million, to its own shareholders as a special dividend. South32 shares trade in Sydney, London and Johannesburg, and this article does not give investment advice.

The approvals the ASX materials name are Australian and South African, plus unnamed competition approvals elsewhere. Alcoa also gains the Hillside smelter, which produced 717,000 tonnes in the year to 30 June 2026.

What Is Not Known

No buyer, price or restart date for Mozal has been announced. Nor is it known whether the Mozambican government, the corporation or a former shareholder will make an offer.

Lusa gives US$122 million as Mozal’s shutdown charge, while Alcircle gives US$117 million, though the parts Lusa lists add to US$122 million. Neither total is confirmed in a South32 document the Rio Times read, so it is not used.

The vote percentage comes from one outlet only and is left out; Mozambique’s government had not commented in the material found. The Rio Times could not open South32’s website and read the ASX text through a Listcorp copy.

What Comes Next

Watch for regulator decisions in Australia and South Africa, any move by MRN partners, and a statement on a Mozal buyer. South32 has said it will consider further shareholder returns after completion.

The vote does not restart Mozal, and it does not decide who owns it. It only confirms that Mozal stays outside the Alcoa sale.

Frequently Asked Questions

What did South32 shareholders approve?

They approved selling five aluminium and bauxite holdings in Australia, South Africa and Brazil to Alcoa. The vote took place on Thursday, 15 October 2026.

Is Mozal part of the sale?

No. South32 states that Mozal is excluded and remains on care and maintenance. Its divestment is under active consideration.

How much is the Alcoa deal worth?

South32 gives an enterprise value of up to US$5.6 billion. About US$4.1 billion is paid up front in cash and Alcoa shares.

When will the sale close?

South32 expects completion in the half year to June 2027, subject to regulatory approvals. The conditions must be met by 29 June 2027 unless extended.

Who owns the Mozal smelter?

South32 holds 63.7%, South Africa’s state-owned Industrial Development Corporation about 32%, and the Mozambican government 3.9%. Published figures for the corporation’s stake differ slightly.

Sources: South32 ASX announcement and investor presentation of 1 July 2026 (Listcorp copy); South32 quarterly report of 19 October 2026 (Listcorp copy); Alcoa press release; Alcoa filing with US regulators (8-K); Business Day, 15 October 2026; Aluminium Today, 15 October 2026; Club of Mozambique (Lusa), 23 October 2026; Mining Weekly, 16 March 2026; Mining Weekly, 20 July 2026; Business Day, 28 August 2026; Alcircle, July 2026; Miningmx, 12 February 2026 (all accessed 24 October 2026).

Connected Coverage Related Rio Times reports are the first report on the Alcoa deal, Who Runs Mozambique’s Economy and Mozambique Geopolitics Explained. City readers can also see What to Do in Maputo in October 2026.