Saleable production from Mozal Aluminium, in Mozambique, increased by 2% to 136 000 t in the six months to December 31, with an 11% increase in sales reflecting the timing of shipments between periods.
Operating unit costs decreased by 12% to $1 448/t in the first half of the 2017 financial year, reflecting stronger sales and lower raw materials prices.
A total of 39 Mozal pots were relined in the period at $193 000 a pot, compared with 69 pots at $212 000 a pot in the corresponding period of the previous financial year.
A total of 106 pots are now scheduled to be relined in this financial year.
Mozal Aluminium uses hydroelectric power generated by Hidroeléctrica de Cahora Bassa, which delivers power into the South African grid to Eskom, with Mozal sourcing the power through the Mozambique transmission company, Motraco.
“We get some protection in terms of the cost of the Hillside business when the LME price goes down and foreign exchange doesn’t work in our favour. So, it provides a bit of a natural hedge, whereas we don’t get that same benefit at Mozal. But likewise, as the exchange goes the other way and we actually see aluminium prices increase, we get more out of Mozal than we do out of Hillside,” Kerr said in response to Mining Weekly Online.