Metlen’s Alumina Expansion Puts Greece at the Heart of Europe’s Aluminum Industry

11:51 20/2/2025 - Πηγή: Dikaiologitika

The alumina will then be sold to mining giant Rio Tinto, strengthening the company’s supply of raw materials for aluminum production.

A new supply chain is set to bridge West Africa and Europe, as bauxite shipments from Guinea

travel 4,496 kilometers to Greece, where they will be processed into alumina at Metlen’s Aluminium of Greece plant in Agios Nikolaos, Boeotia.

The alumina will then be sold to mining giant Rio Tinto, strengthening the company’s supply of raw materials for aluminum production.

The bauxite originates from Compagnie des Bauxites de Guinée (CBG), a company with a 62-year history of mining operations in Guinea.

CBG is co-owned by Halco Mining Inc., which holds a 51% stake, and the Government of Guinea, which controls the remaining 49%. Halco itself is a consortium comprising Rio Tinto and Alcoa, each with a 45% share, and Dadco Investments, holding the remaining 10%.

Rio Tinto plays a pivotal role in overseeing operations, with representation on the boards of both Halco and CBG, as well as in various shareholder oversight committees.

Although Guinea is currently the world's fifth-largest producer of bauxite, it possesses the largest known reserves globally, estimated at up to 25 billion tons. Drawing from these vast resources, Metlen has secured a long-term agreement to source 14.9 million metric tons of bauxite from CBG’s mines over an 11-year period between 2027 and 2037.

This supply will enable the company to refine 3.9 million metric tons of alumina between 2027 and 2034, with an option to extend the contract for an additional three years until 2037.

With this agreement in place, Metlen is set to become a dominant force in the European aluminum industry, accounting for more than 25% of the continent’s total alumina production by 2027. The deal not only strengthens Greece’s role in Europe’s industrial landscape but also highlights the country’s growing influence as a key hub in the aluminum supply chain.

Despite Guinea’s history of political instability and military coups, the government’s 49% stake in CBG has ensured a continuous and stable flow of bauxite exports. This arrangement has played a critical role in sustaining both the local economy and the global supply of raw materials, demonstrating how strategic resource management can support economic growth even in politically volatile regions.

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