METLEN Energy & Metals has signed two long-term strategic agreements with mining giant Rio Tinto to bolster its supply chain for bauxite and alumina.
The first agreement will see Rio Tinto supplying approximately 14.9 million tonnes (mt) of bauxite from the CBG mine in Guinea to METLEN over an 11-year period, from 2027 to 2037.
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The bauxite supply will complement METLEN’s own bauxite production from local mines in Greece.
The second agreement pertains to alumina offtake, under which METLEN will supply Rio Tinto with 3.9mt of alumina, sourced from its expanded Agios Nikolaos refinery, over an eight-year period, starting in 2027.
The agreement includes an option to extend for a further three years.
Rio Tinto Aluminium chief executive Jerome Pécresse said: “Rio Tinto is pleased to forge this long-term partnership with METLEN Energy and Metals, securing alumina supply for our operations in the Atlantic region to continue producing high-quality, low-carbon aluminium for our customers while strengthening our position in Europe.”
The agreements are tied to METLEN’s “landmark” investment plan of €295.5m ($304.1m) at the Aluminium of Greece plant in Agios Nikolaos, Viotia announced in January this year.
The investment aims to develop an integrated production line for bauxite, alumina and gallium, with a total production capacity of 2mt of bauxite, 50t gallium and 1.265mt of alumina annually. All three materials are recognised as critical raw materials by the EU.
The completion of the works and the commencement of production are scheduled for 2026 for bauxite, with alumina and gallium production beginning gradually from 2027 and reaching full-scale operation by 2028.
METLEN Energy & Metals chairman and CEO Evangelos Mytilineos said: “This strategic partnership with Rio Tinto is one more milestone for METLEN, ensuring a secure and competitive supply chain for our expanding alumina production. With these agreements we strengthen our competitive position and deepen our presence in the global alumina market.”
