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METLEN's Historic Investment in Mining and Metal Production

On January 16, 2025, METLEN Energy & Metals (METLEN) made headlines by revealing its intention to invest €295.5 million in a new, large-scale project aimed at revolutionizing the production of bauxite, alumina, and gallium. This ambitious initiative marks a significant milestone in industrial development within Greece, specifically at the historical plant known as "Aluminium of Greece" located in Agios Nikolaos, Viotia.

The investment is poised to ramp up production significantly, targeting an annual output of 2 million tonnes of bauxite, 1.265 million tonnes of alumina—an increase from the current output of 865,000 tonnes—and 50 million tonnes of gallium. Notably, gallium is positioned as a critical raw material by the European Union and is essential for various advanced technologies.

Reducing Dependence on External Suppliers

The decision to undertake this massive project stems from a pressing need for Europe to achieve self-sufficiency in critical raw materials, thereby decreasing reliance on external suppliers. Currently, gallium production is predominantly concentrated in China. Recent export restrictions imposed by the Chinese government have spotlighted the vulnerabilities faced by Western industries, heightening the urgency for alternative supply sources. METLEN’s initiative will completely substitute gallium imports in Europe, fostering greater strategic autonomy and reinforcing Greece’s role in the global economy.

Strategic Benefits and Innovations

Evangelos Mytilineos, Chairman and CEO of METLEN, emphasized the importance of this investment in bolstering Europe’s competitiveness in critical raw materials. He stated, "Our move to invest in the production of bauxite, alumina, and gallium not only strengthens Europe’s raw material independence but also enhances Greece’s strategic position globally. Our commitment to sustainable practices and the circular economy remains steadfast as we lead the way towards greener industrial production."

The €295.5 million investment encompasses several key areas:

• - Research and development of new bauxite reserves.
• - Construction of state-of-the-art facilities and acquisition of mechanical equipment for gallium production.
• - Expansion and modernization of alumina production capabilities.
• - Energy infrastructure enhancement for efficient supply to the industrial unit.
• - Port upgrades alongside roadway and flood protection infrastructure improvements.

Economic Impact and Environmental Stewardship

This ground-breaking project has been presented under the auspices of Greece's Strategic Investments Law and aligns with the European Union’s “Crisis and Transition Framework,” seeking to propel the economy amidst the ongoing geopolitical challenges, notably due to the fallout from the invasion of Ukraine.

The Commission of the European Union has awarded this initiative the STEP certification, acknowledging its vital contribution to the EU's quest for autonomy in crucial raw materials. Moreover, METLEN has pledged to keep investors informed about the project's progress, which is expected to culminate in the completion of initial production units by 2026. Commercial operations for alumina and gallium are slated to begin gradually in 2027, with full-scale operations anticipated by 2028.

METLEN's Role in the Global Market

As a significant player in both the energy and metallurgical sectors, METLEN, formerly under MYTILINEOS Energy & Metals, operates the only vertically integrated facility in the EU for the sustainable production of bauxite, alumina, and primary aluminum. With a consolidated revenue of €5.492 billion and an EBITDA of €1.014 billion, the company exemplifies competitive green metallurgy and comprehensive energy solutions, operating across 40 countries worldwide.

By advancing this large-scale investment, METLEN not only fosters economic growth in Greece but also sets a precedent for sustainable industrial practices in Europe, paving the way for a clean energy future while nurturing vital local industries.