Trafigura in talks to build new aluminum smelter in Egypt
2026-05-07 10:46:51 [Print]
Commodity trading giant Trafigura has confirmed that it is in negotiations with the Egyptian Aluminium Company (Egyptalum) and the Metallurgical Industries Holding Company (MIH) to develop a new aluminum smelter in Egypt.
According to a term sheet signed on Wednesday, the parties plan to establish a new company that will construct, own, and operate a 300,000-tonnes-per-annum (tpa) primary aluminum smelter, along with a 150,000-tpa anode plant at Egyptalum's Nag Hammadi complex.
Once completed, the new facilities would nearly double the site's current annual production capacity, Trafigura said.
Trafigura will participate as a minority equity investor in the new company, and will also act as a debt provider, long-term offtake buyer, and feedstock supplier. Total investment costs for the project are estimated between 750 million and 900 million.
The proposed smelter would provide a much-needed additional source of aluminum supply for an industry that has been severely disrupted by the ongoing war in the Middle East. Strikes on key smelters in both the UAE and Bahrain have already crippled output in the Gulf region, which accounts for approximately 9% of global aluminum supply.
According to a term sheet signed on Wednesday, the parties plan to establish a new company that will construct, own, and operate a 300,000-tonnes-per-annum (tpa) primary aluminum smelter, along with a 150,000-tpa anode plant at Egyptalum's Nag Hammadi complex.
Once completed, the new facilities would nearly double the site's current annual production capacity, Trafigura said.
Trafigura will participate as a minority equity investor in the new company, and will also act as a debt provider, long-term offtake buyer, and feedstock supplier. Total investment costs for the project are estimated between 750 million and 900 million.
The proposed smelter would provide a much-needed additional source of aluminum supply for an industry that has been severely disrupted by the ongoing war in the Middle East. Strikes on key smelters in both the UAE and Bahrain have already crippled output in the Gulf region, which accounts for approximately 9% of global aluminum supply.
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