South32 Limited announced on 14 August 2025 that it has faced significant challenges in securing sufficient and affordable electricity for its Mozal Aluminium operations beyond the current supply agreement, which expires in March 2026. The company has been actively engaging with the Government of Mozambique, Hidroeléctrica de Cahora Bassa, and Eskom without achieving the necessary assurances. As a precautionary measure, South32 Limited is ceasing further investment in Mozal by stopping pot relining and standing down associated contractors, a move that signals Mozal’s likely transition to care and maintenance at the end of the current agreement. The operational impact of these developments is clear. Production at Mozal is now forecast at approximately 240,000 tonnes for the fiscal year 2026 on South32 Limited’s share, reflecting reduced operations due to the halted pot relining process. Alongside operational curtailment, the company has completed a carrying value assessment that has resulted in an impairment charge of US$372 million. This impairment—which includes US$339 million in property, plant and equipment, US$7 million in intangible assets, and US$26 million in raw materials and consumables—decreases Mozal’s carrying value to US$68 million. Importantly, this charge is excluded from the fiscal year 2025 underlying earnings in accordance with South32 Limited’s accounting policies. Market sentiment may interpret these actions in different ways. On the bullish side, investors could see South32 Limited’s proactive measures as a responsible step to mitigate further losses and preserve capital, which could support long-term operational stability and enable the company to focus on other resource developments. Conversely, the bearish perspective emphasizes the significant impairment charge, reduced production outlook, and the uncertainty surrounding future electricity supply, all of which could dampen near-term performance expectations and increase risk for those trading in related sectors.