SMM December 31:
According to SMM statistics, overseas aluminum production in December 2025 increased by 2.2% YoY. The average monthly operating rate was 87.7%, down 1.1 percentage points MoM and 0.8 percentage points YoY, mainly due to the commissioning of new aluminum projects in Indonesia, where operating capacity is still in the ramp-up stage, diluting the overall overseas aluminum operating rate. By the end of December, cumulative production in 2025 had increased by 2.8% YoY.
The first phase of the Indonesian aluminum project PT Kalimantan Aluminium Industry, with a capacity of 500,000 mt, began commissioning at the end of November and is expected to reach full production capacity in October 2026.
On December 12, according to Rio Tinto’s official website, the Australian federal government and the New South Wales government announced a new approach to secure reliable, long-term, and competitively priced energy supply for the Tomago aluminum smelter beyond 2028. This reflects constructive collaboration between Tomago Aluminium and the governments to address energy challenges after the current energy contract expires, reducing long-term risks of production cuts or shutdowns at the Tomago smelter.
On December 16, according to South32’s official announcement, the Mozal aluminum smelter will enter a maintenance shutdown around March 15, 2026, primarily due to the failure to reach a new power supply agreement. Reportedly, parties remain deadlocked over suitable electricity prices, and persistent drought has also affected the power supply from electricity providers. South32’s production guidance for Mozal for FY2026 (ending March 2026) remains unchanged at 240,000 mt (South32’s share, equivalent to approximately 377,000 mt for Mozal’s total output). However, subsequent foreign media reports indicated that Mozambique's Confederation of Business Associations (CTA) has called on the government to avoid the shutdown of Mozal “at all costs.” SMM will continue to monitor developments.
Looking ahead to January 2026, operating capacity at the newly commissioned Indonesian aluminum project is expected to continue ramping up steadily, and daily average aluminum production is projected to maintain growth.
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