Mozal, a factory near Maputo, aims to hike its aluminum output by 40,000 tonnes this fiscal year.
General Director Gil Cumaio states the new target is 578,000 tonnes, up from 538,000 last year.
“Improved operations drive this growth,” says Cumaio. “Recent investments might also lift export levels.”
Last year, the firm mostly shipped aluminum to Europe, with the Netherlands as the main buyer.
Mozal plans to switch its power source to EDM, a Mozambican state-run electric firm. This replaces the previous supply from South Africa’s Eskom.
The plant needs 950 megawatts for its yearly 560,000-tonne production.
Background
Mozal has been a significant player in Mozambique’s industrial sector for years. The facility is one of Africa’s largest aluminum smelters.
South Africa’s Eskom was its primary power source for a long time. The switch to Mozambique’s EDM indicates a focus on local resources.
This decision could bolster EDM’s standing as a key utility provider. It may also reflect Mozal’s confidence in EDM’s reliability.
Given Mozal’s high energy needs, this is a crucial factor. Mozal’s new strategy aligns with a broader push for energy independence in Mozambique.
Aluminum is vital to various industries, from cars to cans. A surge in production could impact global aluminum prices.
Last year’s exports mainly headed to Europe. The Netherlands led the pack as the chief importer.
This suggests strong demand in European markets for Mozambique’s aluminum.
Investments in operational improvements are showing results. Hiking the production target is a sign of ambition.
Achieving it would strengthen Mozal’s market position significantly. This could offer Mozambique a more substantial role in the global aluminum supply chain.