Trafigura Launches Exclusive Negotiations to Develop New Aluminum Smelter in Egypt
Trafigura, a global leader in commodity trading, has entered into exclusive negotiations with Egyptian public companies Egyptian Aluminium Company (Egyptalum) and Metallurgical Industries Holding Company (MIH) to develop a new primary aluminum smelter in Egypt. The project is estimated to require an investment of between $750 million and $900 million.
According to an official statement published by Trafigura, the three partners plan to create a new company to build, own, and operate a smelter with an annual capacity of 300,000 tonnes, accompanied by an anode plant with a capacity of 150,000 tonnes per year. The complex will be located in Nag Hammadi, in southern Egypt, within Egyptalum's existing industrial site. Once operational, the project will nearly double the current production capacity of the Egyptian group, reaching approximately 600,000 tonnes per year.
In this future structure, Trafigura will act as a minority investor, as well as a financial partner and key player in the supply of raw materials and long-term purchase of aluminum production. The Singapore-based group has been present in Egypt for over 20 years and is already one of the country's main suppliers of alumina and liquefied natural gas (LNG). This new alliance marks a further step in its global strategy to secure supplies of industrial metals.
