#Greece #mining #Gallium #METLEN #Agios Nikolaos

METLEN Announces a New Investment in Mining and Metallurgy

On January 16, 2025, METLEN Energy & Metals officially confirmed their decision to invest €295.5 million into a large-scale industrial project in Agios Nikolaos, Viotia, Greece. This initiative focuses on increasing the production of bauxite, alumina, and gallium, marking a significant development in the metallurgy sector. The investment signifies a commitment to enhancing operational capabilities and integrating gallium production, which is pivotal for the future of European industries.

Project Overview

The ambitious investment plan will enable METLEN to enhance its production capacity significantly. The company aims to produce 2 million tonnes of bauxite, 1,265,000 tonnes of alumina (an increase from the current 865,000 tonnes), and 50 tonnes of gallium annually, thereby addressing the growing demand for these critical resources. These materials are classified as Critical Raw Materials (CRMs) by the European Union, underlining their importance in various advanced technologies and industries.

Strategic Importance of Gallium

Gallium, a critical material primarily produced in China until recently, has seen supply chain disruptions due to export restrictions. METLEN's investment will allow Europe to achieve complete self-sufficiency in gallium production, which is essential for various technologies, including integrated circuits (ICs), light-emitting diodes (LEDs), and permanent magnets. By transitioning to local production, METLEN aims to bolster Europe’s strategic independence and enhance technological capacity across multiple sectors, particularly in energy transition and defense.

Investment Details

The €295.5 million allocation will cover various facets of the project, including:

• - Development of New Bauxite Mining Deposits: Expanding raw material supply to sustain increased production.
• - Construction of New Facilities: Establishing modern infrastructure and procuring advanced equipment specifically for gallium production.
• - Modernization of Alumina Production: Upgrading existing facilities to accommodate higher production volumes of alumina.
• - Energy Supply Infrastructure: Ensuring sustainable energy sources are in place to power the industrial operations.
• - Port and Road Infrastructure: Enhancing logistical capabilities for efficient export and transportation of production outputs.

Environmental and Economic Impact

In addition to economic benefits, the project emphasizes sustainability. The introduction of environmentally friendly technologies will significantly reduce the carbon footprint of the production facility. Furthermore, aligning with the principles of the circular economy, METLEN aims to utilize resources more efficiently and responsibly.

As Evangelos Mytilineos, Chairman and CEO of METLEN, stated, "This landmark investment not only strengthens Europe's self-sufficiency in critical raw materials but also enhances Greece's strategic position in the global market. We are dedicated to innovation and sustainable development, reinforcing our commitment to a greener industrial future."

Future Prospects and Developments

METLEN has submitted the investment under Greece's Strategic Investments Law and fulfills criteria set by the Temporary Crisis and Transition Framework, aimed at bolstering the Greek economy post the geopolitical tensions following the Russian invasion of Ukraine. Additionally, this project has been awarded the STEP SEAL from the European Commission, showcasing its vital role in EU material independence.

Looking ahead, production for bauxite is set to commence by 2026, with alumina and gallium operations gradually ramping up from 2027 to full-scale operations by 2028. METLEN is committed to providing regular updates on the progress of this significant investment, which promises to not only boost the local economy but also pave the way for a more resilient energy and metal industry in Europe.

METLEN's forward-thinking strategies position it as a leader in the transition towards an innovative and sustainable economic model, essential for navigating the challenges of a rapidly changing global landscape.