#Greece #Gallium #METLEN #Agios Nikolaos #Aluminium

METLEN's Landmark Investment in Mining and Metallurgy

On January 16, 2025, METLEN Energy & Metals (METLEN) revealed a major industrial investment decision that is set to transform the landscape of mining and metallurgy in Greece. This ambitious initiative, involving an allocation of €295.5 million, aims to significantly expand the production of bauxite, alumina, and gallium. The location for this pivotal project will be Agios Nikolaos in Viotia, within the historic "Aluminum of Greece" facility.

The investment targets an impressive annual production capacity of 2 million tons of bauxite, 1,265,000 tons of alumina, and 50 tons of gallium. Notably, this is the first time gallium will be produced directly from bauxite in an integrated industrial process. Each of these materials is classified as critical raw materials (CRM) by the European Union, highlighting their strategic importance.

Investment Overview

The capital expenditures (Capex) will cover several essential areas, including:

• - Research and Development: Focusing on new bauxite mining sites.
• - Construction of New Facilities: Including mechanical equipment for gallium production.
• - Capacity Expansion and Modernization: Upgrading current alumina production units and incorporating new technologies.
• - Energy Supply Infrastructure: Ensuring reliable energy for the industrial unit.
• - Port Expansion and Upgrades: Improving shipping and logistics functionalities.
• - Additional Infrastructure Projects: This includes transportation routes and flood protection systems.

Evangelos Mytilineos, CEO of METLEN, emphasized that this historic investment decision enhances Europe’s self-sufficiency in essential raw materials and solidifies Greece's strategic position on the global stage. It will also protect the European industry from external dependencies.

Significance of Gallium Production

Gallium is a critical component for numerous technologies, including integrated circuits (ICs) used in computing and telecommunications, light-emitting diodes (LEDs), and permanent magnets. Currently, the majority of gallium production is concentrated in China, which has imposed export restrictions that pose risks to Western supply chains. This investment by METLEN anticipates fulfilling Europe’s demand for gallium, allowing it to gain strategic autonomy in this sector.

The decision comes at a crucial time, highlighted by the need for Europe to diversify its resource imports in light of geopolitical tensions. This project not only aims to replace gallium imports completely but also to enhance the region's trade balance through increased exports of these critical materials evaluated at nearly €1 billion.

Environmental Commitments and Technological Innovations

In addition to enhancing production capacity, METLEN is committed to integrating environmentally friendly technologies into its operations to minimize carbon footprints. The firm plans to leverage synergies with its energy divisions to make energy costs more manageable, underpinning a transition towards more sustainable industrial practices.

The investment aligns with Greece’s strategic investment law and meets the criteria of the EU’s Temporary Crisis and Transition Framework (TCTF), responding to economic pressures following the geopolitical landscape shaped by events such as the Russia-Ukraine conflict. Moreover, it has recently garnered the STEP SEAL (Sovereignty Seal) from the European Commission, acknowledging its substantial contribution to the EU's self-sufficiency.

Future Prospects

METLEN is poised to keep its stakeholders updated as the project advances; the completion of construction and startup of bauxite production are targeted for 2026, with alumina and gallium production commencing progressively in 2027. Large-scale operations are anticipated by 2028.

As a multinational powerhouse in energy and metallurgy, METLEN stands as a benchmark for competitive green metallurgy in Europe and globally, operating the only vertically integrated production unit for bauxite, alumina, and primary aluminum in the European Union. With a comprehensive scope over energy projects—ranging from thermal and renewable energy solutions to electric grid infrastructure—the company is at the forefront of fostering sustainable growth and technological advancements in its sectors.

For more information about METLEN Energy & Metals and its initiatives, visit METLEN's official website.