14 July 2025

South32 Limited

(Incorporated in Australia under the Corporations Act 2001 (Cth))

(ACN 093 732 597)

ASX / LSE / JSE Share Code: S32; ADR: SOUHY

ISIN: AU000000S320

south32.net

MOZAL ALUMINIUM UPDATE

South32 Limited (ASX / LSE / JSE: S32; ADR: SOUHY) (South32) provides the following update regarding our ongoing work to secure a new electricity supply agreement for the Mozal Aluminium smelter (Mozal), and an associated impairment expense that will be recognised with our FY25 results.

Electricity is supplied to Mozal under an agreement due to expire in March 2026. Historically, the majority of electricity for Mozal has been generated in Mozambique by a hydro-electric power generator, Hidroeléctrica de Cahora Bassa (HCB). HCB is majority owned by the Government of the Republic of Mozambique. Under the agreement, electricity from Eskom is supplied to Mozal when HCB is unable to meet all of Mozal's electricity requirements.

We have been working with the Government of the Republic of Mozambique, HCB and Eskom for the last six years to secure electricity supply to Mozal beyond March 2026. To date, Mozal has been unable to agree an affordable electricity price tariff. HCB has also 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.

We are continuing to engage with the Government of the Republic of Mozambique, HCB and Eskom on securing affordable electricity supply to enable Mozal to operate beyond March 2026 and maintain its substantial contribution to the economy of Mozambique.

We are assessing the carrying value of Mozal given the increased uncertainty regarding future electricity supply and expect to recognise an impairment expense in our FY25 results. We will provide the quantum of the impairment expense when this assessment is completed.

Given the uncertainty of operating beyond March 2026, FY26 production guidance for Mozal is under review.

About Mozal Aluminium

Mozal Aluminium is located near Maputo, Mozambique. The smelter produces high-quality, primary aluminium for domestic and export markets. Mozal contributes approximately three percent of national gross domestic product and is a significant industrial employer, providing jobs for thousands of employees and contractors.

South32 holds 63.7% of Mozal, the Industrial Development Corporation of South Africa Limited holds 32.4%, and the Government of the Republic of Mozambique holds 3.9%.

About us

Our purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources. We produce minerals and metals critical to the world's energy transition from operations across the Americas, Australia and Southern Africa and we are discovering and responsibly developing our next generation of mines. We aspire to leave a positive legacy and build meaningful relationships with our partners and communities to create brighter futures together.

Further information on South32 can be found at www.south32.net.

Approved for release to the market by Graham Kerr, Chief Executive Officer
JSE Sponsor: The Standard Bank of South Africa Limited
14 July 2025