The South32 Ltd (ASX: S32) share price is having a difficult time on Wednesday.

In morning trade, the mining giant's shares are down 5% to $3.50.

This compares to a 0.3% decline by the ASX 200 index at the time of writing.

Why is the South32 share price under pressure?

The catalyst for today's weakness has been the release of an update on the company's Mozal Aluminium operation after the market close on Tuesday.

South32's Mozal Aluminium operation is located 20 kilometres west of Mozambique's capital city, Maputo.

The company notes that thanks to a US$2 billion investment, the smelter was the largest private investment in the East African country and the first large, direct foreign investment, helping rebuild Mozambique after a period of unrest.

South32 holds a 63.7% share of Mozal Aluminium, with the Industrial Development Corporation of South Africa holding 32.4% and the Government of the Republic of Mozambique holding 3.9%.

It highlights that Mozal Aluminium is the largest industrial employer in the country, making a significant contribution to the local economy.

What's the latest?

Unfortunately, unrest has returned to Mozambique this year and it is now impacting South32's Mozal Aluminium operation.

This is being caused by disputed election results in October that have sparked protests from opposition supporters.

Late yesterday, the company advised that due to escalating civil unrest in Mozambique, the transport of raw materials to Mozal Aluminium is being impacted by road blockages.

And while the company has implemented contingency plans to mitigate operational impacts and is working with relevant stakeholders, it was forced to withdraw production guidance for Mozal Aluminium as it responds to the evolving situation.

One positive is that management notes that its workforce is safe and there have been no security incidents at the site.

It isn't just South32 that is being impacted. CNBC Africa notes that South African mining companies that ship minerals including chrome through the port of Maputo have also been hit by the unrest. This has recently led the closure of the main border between the neighbouring countries.

Should you buy the dip?

Analysts at Goldman Sachs are positive on South32 and see value in its share price.

They currently have a buy rating and $3.90 price target on them. Based on its current share price, this implies potential upside of approximately 11.5% for investors over the next 12 months.

Though, it is worth noting that Goldman's analysts have yet to respond to this development, so their recommendation could change in the coming days.