Mozal Aluminium Update

• Mozal electricity supply agreement set to expire in March 2026
• Difficulty securing affordable electricity price tariff with HCB and Eskom
• Potential impact of drought on HCB's electricity generation capacity

South32 Limited (ASX/LSE/JSE: S32; ADR: SOUHY) has provided an update regarding its ongoing work to secure a new electricity supply agreement for the Mozal Aluminium smelter (Mozal) in Mozambique. Mozal's current electricity supply agreement is set to expire in March 2026. Historically, the majority of Mozal's electricity has been generated by the hydro-electric power generator, Hidroeléctrica de Cahora Bassa (HCB), which is majority owned by the Government of the Republic of Mozambique. When HCB is unable to meet Mozal's full electricity requirements, electricity from Eskom is supplied. South32 has been working with the Government of Mozambique, HCB, and Eskom for the past six years to secure an affordable electricity price tariff for Mozal beyond March 2026. However, Mozal has been unable to agree on an affordable electricity price tariff to date. Additionally, HCB has recently indicated that drought conditions have the potential to impact its electricity generation and capacity to deliver sufficient hydro-electric power to Mozal. These factors have resulted in increased uncertainty regarding future electricity supply to Mozal. South32 is continuing to engage with the relevant parties to secure affordable electricity supply to enable Mozal to operate beyond March 2026 and maintain its substantial contribution to the Mozambican economy. Due to the increased uncertainty regarding future electricity supply, South32 is assessing the carrying value of Mozal and expects to recognize an impairment expense in its FY25 results. The quantum of the impairment expense will be provided once the assessment is completed. Given the uncertainty of operating beyond March 2026, FY26 production guidance for Mozal is under review.

South32 expects to recognize an impairment expense related to the Mozal Aluminium smelter in its FY25 results, due to the increased uncertainty regarding future electricity supply. The quantum of the impairment expense will be provided once the assessment is completed.