• Insufficient and unaffordable electricity supply beyond March 2026
• Mozal to be placed on care and maintenance at the end of current electricity agreement
• Impairment of US$372M to be recognized in FY25 financial results

South32 Limited has provided an update regarding its Mozal Aluminium (Mozal) operations in Mozambique. The company has continued to engage with the Government of the Republic of Mozambique, Hidroeléctrica de Cahora Bassa (HCB) and Eskom to secure sufficient and affordable electricity supply to enable Mozal to operate beyond March 2026, when the current agreement expires. However, these engagements have not provided confidence that Mozal will secure sufficient and affordable electricity beyond March 2026. As a result, South32 will limit investment in Mozal, stopping pot relining and standing down associated contractors starting this month. Without access to sufficient and affordable electricity, the company expects that Mozal will be placed on care and maintenance at the end of the current agreement. Mozal's FY26 production is expected to be approximately 240kt (South32 share) reflecting fewer pots in operation as the company stops pot relining and operations continuing only to March 2026. South32 has completed a carrying value assessment of Mozal given the increased uncertainty regarding future electricity supply. Consequently, the company will recognize an impairment of US$372M (same amount post tax) for Mozal with its FY25 financial results, which includes US$339M of property, plant and equipment, US$7M of intangible assets and US$26M of raw materials and consumables. The impairment reflects South32's assessment that the most likely scenario is for Mozal to operate until the end of the current electricity supply agreement and be placed on care and maintenance in March 2026. The impairment reduces Mozal's carrying value to US$68M, with the impairment to be excluded from FY25 Underlying earnings, in accordance with the company's accounting policies.