Mozambique: Mozal affected by world financial crisis

18 February 2009

Maputo, Mozambique, 18 Feb – The Mozambique Aluminium Smelter (Mozal) company made a loss of US$115 million in the last financial year, as a result of the world financial crisis, according to a document from the Bank of Mozambique to which Macauhub had access.

According to the central bank, a fall was seen in the price of aluminium on the international market, which affected the company’s profits.

Mozal, which represents an investment of over US$2.5 billion, has also felt the effects of the South African energy crisis and, as a result is receiving 10 percent less energy than it requires.

MOzal receives electricity from Mozambican distribution company Motraco, a company set up by electricity companies from Mozambique, South Africa and Swaziland.

With the crisis affecting the foundry, which is Mozambique’s largest company, it plans to make 90 workers redundant this year.

Mozal, which is one of the biggest aluminium foundries in Africa, is a partnership between BHP Billiton (Australia), Mitsubishi Co (Japan), Industrial Development Corporation (South Africa), and the Mozambican government. (macauhub)