New Large-Scale Mining,
Metallurgical, and Industrial Investment by METLEN Amounting to
€295.5 Million
Development of an Integrated
Production Line for Bauxite, Alumina, and Gallium
·
Investment
Plan of €295.5
million
·
Total Annual
Production Capacity of1,265,000 tonnes of alumina, 50 MT of
Gallium, and ~1 million tonnes of bauxite
·
Full
substitution of Gallium imports in Europe
·
Improvement of
Greece's trade balance through increased exports
Athens, Greece
-
January 16, 2025 -
METLEN Energy & Metals
(METLEN) announces that the Metallurgy Committee, in a joint session
with the Capital Allocation Committee, made the Final Investment
Decision (FID) today, January 16, 2025, to proceed with the implementation of a
new large-scale investment in the production of bauxite, alumina,
and Gallium.
This landmark project, to be
implemented in Agios Nikolaos, Viotia, within the historic "Aluminium
of Greece" plant, represents a milestone in the history of the
Metallurgy Sector. It will significantly enhance the production
capacity while incorporating Gallium into industrial production for
the first time, a critical material for Europe's future.
The €295.5 million investment plan
aims to achieve a total production capacity of 2 million tonnes of
bauxite (annually), 1,265,000 tonnes of alumina (up from 865,000
tonnes currently), and 50 MT of Gallium for the first time. All
three materials are included in the European Union's list of
Critical Raw Materials (CRMs). The total capital expenditure
(Capex) includes the following investments:
·
Development of research and new bauxite mining
deposits,
·
Construction of new facilities and procurement of
mechanical equipment for Gallium production,
·
New facilities and equipment for the expansion and
modernization of alumina production capacity,
·
Energy supply infrastructure for the industrial
unit,
·
Port expansion and upgrades,
·
Other road infrastructure and flood protection
projects,
Evangelos Mytilineos, Chairman and CEO of METLEN, commented: «The decision by METLEN to
proceed with the implementation of a new, landmark industrial
investment in the production of bauxite, alumina and
Gallium, strengthens Europe's self-sufficiency in critical raw
materials and bolsters Greece's strategic position on the global
landscape. Moreover, it shields the European industry from external
dependencies. We are proving our commitment to innovation,
sustainable development, and circular economy, while reaffirming
METLEN's role as a leader in the transition toward greener and more
resilient industrial production. »
Specifically for Gallium, it should
be noted that it is a by-product of certain qualities of bauxite
(including Greek bauxite) during the refining process into alumina,
with its production being almost entirely concentrated in China.
However, China's decision to impose export restrictions on Gallium
(July 2023) highlighted the West's vulnerability and the need to
diversify supply sources.
METLEN's investment enables Europe
to completely substitute Gallium imports, significantly bolstering
its strategic autonomy and minimizing reliance on external
suppliers. This autonomy is crucial for reducing dependence on
third countries and ensuring the production of critical
technologies across various sectors, from energy transition to
defence. For instance, Gallium is essential for:
a) Integrated Circuits
(IC) used in
computing and telecoms,
b) Light emitting diodes (LED)
and
c) Permanent magnets etc.
The production of these three
critical materials-valued at approximately €1 billion-will be
exported to European and North American markets.
This state-of-the-art investment
will also introduce new environmentally friendly technologies,
reducing the facility's carbon footprint. In addition, through
critical synergies with METLEN's Energy Sector, energy costs will
become completely sustainable.
METLEN has submitted the investment
project under Greece's Strategic Investments Law. The investment
also meets the criteria of the "Temporary Crisis and Transition
Framework" (TCTF), aimed at supporting the economy in the aftermath
of the Russian invasion of Ukraine.
Furthermore, the project recently
received the European Commission's STEP SEAL (so called "Sovereignty Seal"),
recognizing its significant contribution to the EU's
self-sufficiency in critical raw materials (CRM).
METLEN is committed to keeping
investors informed of the project's progress. Completion of the
works and production start-up is scheduled for 2026 for bauxite,
with alumina and Gallium production beginning gradually from 2027
and full-scale operation by 2028.
For further information
please contact:
Ms. Antigoni Fakou: METLEN Press
Office, Tel. +30210-6877346 | Fax +30210-6877400 | E-mail:
Antigoni.fakou@metlengroup.com
METLEN:
METLEN Energy & Metals -
evolution of MYTILINEOS Energy & Metals - is a multinational
industrial and energy company, a leader in the metallurgy and
energy industries, focused on sustainability and circular economy.
The Company is listed on the Athens Stock Exchange, with a
consolidated turnover and EBITDA of €5.492 billion and €1.014
billion, respectively. METLEN is a reference point for competitive
green metallurgy at the European and global level, whilst operating
the only vertically integrated bauxite, alumina and primary
aluminum production unit in the European Union (E.U.) with
privately owned port facilities. In the energy sector, METLEN
offers comprehensive solutions, covering thermal and renewable
energy projects, electricity distribution and trading, alongside
investments in grid infrastructure, battery storage,
and other green technologies. The Company is active in the markets
of all five continents, in 40 countries, adopting a full-scale
synergetic model between the Metallurgy and Energy Sectors, while
undertaking end-to-end development of major energy infrastructure
projects.
For more information, please
visit: www.metlengroup.com
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