Exciting €295.5 Million Investment in Bauxite and Alumina

Major Investment by METLEN in Bauxite and Alumina Production

Development of an Integrated Production Line for Bauxite, Alumina, and Gallium

• Investment Plan of €295.5 million
• Total Annual Production Capacity of 1,265,000 tonnes of alumina, 50 MT of Gallium, and ~2 million tonnes of bauxite
• Full substitution of Gallium imports in Europe
• Improvement of trade balance through increased exports

METLEN Energy & Metals has enthusiastically announced a groundbreaking investment decision amounting to €295.5 million aimed at scaling up the production of crucial materials including bauxite, alumina, and Gallium. This decision, made during a joint session by the Metallurgy and Capital Allocation Committees, marks a transformative moment for the company and the metallurgy sector at large.

This ambitious project will be located at the historic aluminium plant, emphasizing the strategic importance of elevating production capacity while introducing Gallium in industrial production lines, a material pivotal for the future of Europe.

The investment is structured to achieve an impressive annual production capacity of 2 million tonnes of bauxite, a jump from the current 865,000 tonnes to 1,265,000 tonnes for alumina, along with 50 MT of Gallium produced for the first time. These materials hold a critical role on the European Union's list of Critical Raw Materials (CRMs).

The planned investment includes several key components:

• Development of fresh research initiatives and new bauxite mining deposits,
• Construction of new production facilities and machinery for Gallium,
• Expansion and modernization of alumina production units,
• Enhancements to energy supply infrastructure for the industrial site,
• Port expansion and upgrade projects,
• Infrastructure improvements including roads and flood protection.

Evangelos Mytilineos, Chairman and CEO of METLEN, expressed his commitment saying, "This decision to advance a significant industrial investment in bauxite and alumina production not only improves Europe’s self-sufficiency in critical materials but also fortifies Greece’s position on the global stage. This project reinforces our pledge to drive forward a sustainable and innovative approach to industrial production. It emphasizes METLEN's commitment towards supporting a greener economy while reducing dependency on external resources."

A special focus lies on Gallium, which is derived primarily from bauxite during alumina refining. Most Gallium production has been concentrated in China, leading to vulnerabilities when export restrictions were pursued. METLEN's initiative will ensure that Europe no longer depends on imports for Gallium, thereby enhancing its strategic autonomy and supporting development in essential technologies across various sectors including energy and defense.

The products generated by this investment, valued around €1 billion, will be aimed at both the European and North American markets, heralding a new era of competitiveness and innovation.

Furthermore, this initiative underlines METLEN's dedication to environmentally conscious practices, implementing advanced technologies that aim to minimize carbon emissions and ensure sustainable energy consumption.

As part of its commitment, METLEN has submitted this project under Greece's Strategic Investments Law and has gained recognition from the European Commission for its integral role in fortifying the EU's self-sufficiency in CRMs.

Expected timelines for completion of the project indicate that bauxite production will commence by 2026, with alumina and Gallium production expected to begin progressively from 2027, reaching full operation by 2028.

About METLEN: METLEN Energy & Metals is a multinational leader in the metallurgy and energy sectors. With a significant emphasis on sustainability and innovation, METLEN operates the only vertically integrated bauxite, alumina, and primary aluminium production unit within the European Union, signifying its strategic importance in competitive metallurgy. The company, a part of the Athens Stock Exchange, thrives across 40 countries, furthering its model of synergy between its Metallurgy and Energy sectors.

Frequently Asked Questions

What is METLEN's latest investment focus?

METLEN's latest investment focuses on enhancing the production capacity of bauxite, alumina, and Gallium with an investment of €295.5 million.

Why is this investment significant for Europe?

This investment will allow Europe to reduce its reliance on Gallium imports, promoting self-sufficiency in critical raw materials essential for various industries.

What materials will be produced under this investment?

The investment will yield 2 million tonnes of bauxite, 1,265,000 tonnes of alumina, and 50 MT of Gallium annually.

How does this project align with sustainability goals?

The investment incorporates environmentally friendly technologies and aims to reduce the facility's carbon footprint, aligning with sustainable practices.

When is the expected start of production?

Bauxite production is expected to begin in 2026, while alumina and Gallium production will start from 2027, reaching full operation by 2028.

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