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

METLEN Energy & Metals Forges Strategic Agreements with Rio Tinto

In a significant move for both companies, METLEN Energy & Metals (METLEN) has announced the successful completion of two long-term strategic agreements with Rio Tinto. This partnership is set to enhance the supply chain for bauxite and alumina substantially.

Expansion of alumina production capacity

As part of its ambitious expansion strategy, METLEN is investing heavily in the historical "Aluminium de Grèce" plant located at Agios Nikolaos, Viotia, Greece. This investment aims to boost alumina production from 865,000 tons to an impressive 1,265,000 tons annually, a substantial increase that is poised to strengthen METLEN's position in the global alumina market.

To support this expansion, METLEN has secured two contracts with Rio Tinto, which assure a continuous supply of essential materials for its operations. Under the bauxite supply agreement, Rio Tinto will deliver approximately 14.9 million metric tons of bauxite from its CBG mine in Guinea over an 11-year period, spanning from 2027 to 2037. This is crucial, as it will supplement METLEN's production from its local mines.

Alumina supply arrangement

In turn, METLEN is committed to supplying Rio Tinto with 3.9 million metric tons of alumina sourced from its expanded refinery in Agios Nikolaos. This commitment will last for eight years, from 2027 to 2034, with an option to extend the agreement another three years until 2037. Such an arrangement ensures a mutual benefit, as it stabilizes the supply pipeline for both parties involved.

Comments from leadership

Evangelos Mytilineos, the CEO of METLEN Energy & Metals, emphasized the strategic importance of this collaboration with Rio Tinto, stating, "This partnership solidifies a secure and competitive supply chain for our expanding alumina production. Through these agreements, we are not only reinforcing our competitive position but also aiming for increased market presence globally."

Jérôme Pécresse, the CEO of Rio Tinto Aluminium, echoed this sentiment, expressing satisfaction with the partnership. He stated, "Rio Tinto is delighted to establish this long-term partnership with METLEN Energy & Metals, ensuring a steady alumina supply for our operations in the Atlantic region. This move reinforces our capacity to produce high-quality, low-carbon aluminum for our clients while enhancing our foothold in Europe."

Strategic foresight in the global market

These ground-breaking agreements underscore METLEN’s broader strategy to strengthen and expand its foothold in the global alumina market. By securing long-term bauxite supply and an ongoing sales agreement for alumina production, METLEN is positioning itself as an integral player in the industry, and this will ensure sustainable growth moving forward.

About METLEN Energy & Metals

METLEN Energy & Metals stands out as a multinational industrial and energy firm, leading in both metallurgy and energy sectors. The company is committed to sustainability and has a strong focus on the circular economy. With its stock listed on the Athens Exchange and an impressive consolidated revenue of €5.492 billion alongside an EBITDA of €1.014 billion, METLEN has become a benchmark for competitive green metallurgy at both European and global levels.

Additionally, it operates the only vertically integrated bauxite-alumina-aluminum production unit within the European Union, equipped with private port facilities. In the energy sector, METLEN provides comprehensive solutions, including thermal and renewable energy projects, electricity distribution and trading, as well as investments in network infrastructure and battery storage technologies.

Present in 40 countries across five continents, METLEN adopts a large-scale synergy model connecting metallurgy and energy sectors while developing end-to-end major energy infrastructure projects.

For further information, visit METLEN's official website.