#Greece #Rio Tinto #METLEN Energy #Agios Nikolaos #alumina supply

METLEN Energy & Metals Secures Strategic Agreements with Rio Tinto

In a significant move for the energy and metals industry, METLEN Energy & Metals (METLEN) has announced the establishment of two long-term strategic agreements with Rio Tinto, aimed at enhancing operational efficiency and strengthening its supply chain in bauxite and alumina production. This partnership represents a vital step in METLEN's ambition to solidify its presence in the global alumina market amidst rising demand for sustainable metal production.

Major Expansion at Agios Nikolaos Plant

A cornerstone of this alliance is METLEN's commitment to a large-scale expansion of its alumina production capacity at the renowned 'Aluminium of Greece' facility located in Agios Nikolaos, Viotia, Greece. This substantial investment will boost the plant’s annual alumina output from 865,000 metric tonnes to an impressive 1,265,000 metric tonnes, thereby significantly augmenting METLEN's production potential.

To support this expansion, METLEN has signed two pivotal agreements with Rio Tinto. The first is a Bauxite Supply Agreement that guarantees approximately 14.9 million metric tonnes of bauxite over the next eleven years from the CBG mine in Guinea (2027-2037). This will not only supplement METLEN’s own extraction from local mines but will also help ensure consistent production levels as global demands rise.

The second agreement, the Alumina Offtake Agreement, will see METLEN supplying Rio Tinto with 3.9 million metric tonnes of alumina over an eight-year period (2027-2034), with an optional extension for three additional years (2035-2037). This arrangement not only secures alumina supply for Rio Tinto but also enhances METLEN's revenue prospects as they navigate the evolving market landscape.

Leadership Perspectives on the Deal

Evangelos Mytilineos, the Chairman & CEO of METLEN Energy & Metals, expressed his enthusiasm regarding this partnership, stating, "This strategic partnership with Rio Tinto is a milestone for METLEN, ensuring a secure and competitive supply chain for our expanding alumina production. With these agreements, we strengthen our competitive position and deepen our presence in the global alumina market."

On the other side of the partnership, Jerome Pécresse, Chief Executive of Rio Tinto Aluminium, emphasized the importance of collaboration, stating, "Rio Tinto is pleased to forge this long-term partnership with METLEN Energy and Metals, securing alumina supply for our operations in the Atlantic region to continue producing high-quality, low-carbon aluminum for our customers while strengthening our position in Europe."

A Sustainable Future

These agreements align with METLEN's broader strategy of reinforcing its operations in the global alumina market through sustainable growth practices. By securing a long-term bauxite supply and establishing a stable offtake arrangement for its alumina production, METLEN is poised to become a key player in the industry. This positions the company favorably as the market increasingly shifts towards sustainability and circular economic models.

METLEN Energy & Metals is recognized as a leader in the metallurgy and energy sectors, with a focus on sustainable practices and pioneering circular economy initiatives. The firm is publicly listed on the Athens Stock Exchange and generated a consolidated turnover of €5.492 billion and an EBITDA of €1.014 billion, cementing its standing in competitive green metallurgy on both the European and global stage.

For more information about METLEN Energy & Metals and its initiatives, you can visit www.metlengroup.com.