Metlen Energy & Metals announced that the final decision for the implementation of a new major investment concerning the production of bauxite, alumina and gallium was announced by the Metallurgy Committee in a joint meeting with the Capital Allocation Committee.
According to the company, the emblematic project to be implemented in Agios Nikolaos, Boeotia, within the boundaries of the historic “Aluminium of Greece” factory, is a milestone in the history of the metallurgy sector, since it will significantly increase its production capacity, while it will also integrate gallium, a critical material for the future of Europe, into industrial production.
Investment plan of 295.5 million euros
The investment plan of 295.5 million euros aims to achieve a total production capacity (on an annual basis) of 2 million tons of bauxite, 1,265,000 tons of alumina (up from 865,000 tons) and 50 MT of gallium (for the first time). It is noted that all three of these materials are included in the European Union’s list of Critical Raw Materials. The total Capex includes the following individual investments:
Development of research and new bauxite mining deposits,
New building facilities and mechanical equipment for the development of the gallium production line,
New building facilities and mechanical equipment for the expansion and modernization of the alumina production capacity,
Energy supply projects for the industrial unit,
Expansion and upgrade of the port,
Other road infrastructure and flood control projects.
Mytilineos: Investment that strengthens Europe’s self-sufficiency in critical raw materials
Evangelos Mytilineos, President and CEO of Metlen, said that the company’s decision “to proceed with the implementation of a new, emblematic industrial investment for the production of bauxite, alumina and gallium, strengthens Europe’s self-sufficiency in critical raw materials, but also Greece’s strategic position on the world map. At the same time, it protects European industry from external dependencies.”
“We demonstrate in practice our commitment to innovation, sustainable development and the circular economy, while at the same time we firmly confirm that Metlen can play a leading role in the transition towards a more ‘greener’ and resilient industrial production,” Mytilineos added.
Gallium imports in Europe are fully restored
Regarding gallium, it should be noted that it is a by-product of certain grades of bauxite (including Greek ones) during their refining into alumina, with its production taking place almost exclusively in China. However, China’s decision to impose restrictions on gallium exports (July 2023) highlighted the vulnerability of the West, as well as the need to diversify supply sources.
Following Metlen’s investment, European gallium imports are being fully restored, resulting in a significant boost to Europe’s strategic autonomy, which requires a reduction in dependence on third countries, in order to ensure the production of critical technologies spanning a wide range of production, from the energy transition to defense.
Indicatively:
a) Integrated Systems used in IT and telecommunications,
b) Light-emitting diode (LED) lamps and
c) Permanent magnets, etc.
The production of all three of these critical materials (bauxite, alumina and gallium, currently worth around 1 billion) is intended for export to countries in Europe and North America.
According to the company, the innovative investment will also introduce new and environmentally friendly technologies that will reduce the unit’s carbon footprint. At the same time, through critical synergies with Metlen’s Energy Sector, the energy cost will become completely sustainable.
When will production start?
The completion of the projects and the start of production is set for bauxite in 2026, and for alumina and gallium, gradually from 2027, with full operation in 2028.
