**Greece**: METLEN Energy & Metals has secured strategic agreements with Rio Tinto aimed at increasing alumina production at its Agios Nikolaos plant, boosting supply chain efficiencies and solidifying its competitive position in the global market through significant investments and long-term supply agreements.
METLEN Energy & Metals has announced major developments in its operations through two long-term strategic agreements with Rio Tinto, aimed at enhancing supply chain efficiencies in Bauxite and Alumina. The agreements are part of METLEN’s broader strategy to expand its production capabilities and fortify its role within the global alumina market.
The cornerstone of this collaboration is a substantial investment in the ‘Aluminium of Greece’ plant located in Agios Nikolaos, Viotia, Greece. This investment is designed to significantly boost the refinery’s alumina production capacity from 865,000 metric tonnes (MT) to 1,265,000 MT annually. This increase in output is expected to bolster METLEN’s competitive standing in an evolving market.
As part of the agreements, METLEN has formalised a Bauxite Supply Agreement with Rio Tinto, which will see the mining giant supply approximately 14.9 million tonnes of bauxite from the Compagnie des Bauxites de Guinée (CBG) mine in Guinea over an 11-year period, spanning from 2027 to 2037. This substantial volume is intended to enhance METLEN’s local bauxite production efforts.
In addition, the Alumina Offtake Agreement stipulates that METLEN will provide Rio Tinto with 3.9 million tonnes of alumina from its expanded Agios Nikolaos refinery across an 8-year period, from 2027 to 2034, with an optional extension of an additional three years until 2037.
Evangelos Mytilineos, Chairman & CEO of METLEN Energy & Metals, remarked on the significance of this arrangement, stating: “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.”
Jerome Pécresse, Chief Executive of Rio Tinto Aluminium, expressed enthusiasm for the partnership, highlighting its importance: “Rio Tinto is pleased to forge this long-term partnership with METLEN Energy & 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.”
These agreements mark a significant step for METLEN as it continues to establish itself as a pivotal player in the alumina industry, ensuring not just growth but also sustainable practices within its operations.
Source: Noah Wire Services
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