Strategic Partnerships: METLEN Energy & Metals Teams Up with Rio Tinto for Bauxite and Alumina Supply

METLEN Energy & Metals Forms Key Partnerships with Rio Tinto

In a remarkable strategic move, METLEN Energy & Metals, a global leader in the metallurgy sector, has announced the establishment of two extended strategic agreements with the renowned mining company, Rio Tinto. These agreements are set to enhance the supply chain for both bauxite and alumina, two crucial raw materials for their expanding aluminum operations.

Expansion Plans and Supply Agreements

As part of its growth strategy, METLEN has pledged a significant investment into its historical plant, the "Aluminum of Greece," located in Agios Nikolaos, Boeotia, Greece. This investment aims to ramp up its alumina production capacity from the current 865,000 tons to an impressive 1,265,000 tons annually. To facilitate this ambitious expansion, the company entered into two substantial long-term contracts with Rio Tinto, which promise to ensure a stable supply of crucial raw materials.

The bauxite supply deal allows METLEN to receive approximately 14.9 million tons of bauxite from Rio Tinto’s operations at the CBG mine in Guinea over an 11-year period (2027-2037). This agreement is designed to supplement METLEN's own production from local mines, thus securing their raw material supply chain effectively.

Furthermore, the alumina take-off agreement will see METLEN supplying Rio Tinto with 3.9 million tons of alumina from its expanded Agios Nikolaos refinery over an initial period of eight years (2027-2034) with an optional extension of three additional years (2035-2037). This long-term commitment illustrates METLEN’s strategic intent to position itself firmly in the bauxite and alumina markets.

Comments from Leadership

Evangelos Mytilineos, the Chairman and CEO of METLEN Energy & Metals, expressed his excitement regarding this strategic partnership, noting, "This partnership with Rio Tinto marks a significant milestone for METLEN, securing a reliable and competitive supply chain for our expanding alumina production. These agreements enhance our competitive position and deepen our presence in the global alumina market." His optimism reflects the long-term vision of METLEN as they aim to bolster their market presence.

Jerome Pécresse, the Chief Executive of Rio Tinto Aluminium, echoed similar sentiments, stating, "Rio Tinto is pleased to establish this long-term partnership with METLEN Energy & Metals, ensuring a steady alumina supply for our operations in the Atlantic region. This collaboration will enable us to continue producing high-quality, low-carbon aluminum for our customers while solidifying our position in Europe."

METLEN's Market Strategy

These new agreements align with METLEN's broader strategy to strengthen and expand its activities within the global alumina market. By ensuring long-term bauxite supplies and stable alumina off-take agreements, METLEN is not only boosting its operational capabilities but also establishing itself as a significant industry player, promoting sustainable growth

METLEN Energy & Metals operates as a multinational industrial powerhouse, primarily focused on metallurgical and energy industries. The company emphasizes sustainability and circular economy principles, aiming to transition towards greener practices within its operations. Listed on the Athens Stock Exchange, METLEN recorded a consolidated revenue of €5.492 billion and an EBITDA of €1.014 billion, highlighting its robust financial performance in a competitive market.

As one of the critical players in the European market, METLEN initiates various projects across all five continents, maintaining an integrated supply chain from bauxite, alumina, to primary aluminum production within the EU. The company also emphasizes a synergistic model across its metal and energy sectors, overseeing extensive energy infrastructure projects from inception to execution.

For further insights into METLEN Energy & Metals and its sustainability initiatives, visit METLEN’s official website.

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