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| Rio Tinto |
Long-Term Agreement Strengthens Supply Chains and Expands Alumina Trade
Metlen (formerly Mytilineos) has entered into a landmark long-term supply agreement with Rio Tinto, securing critical raw materials and reinforcing the aluminium value chain for both companies. The dual-stream deal, set to begin in 2027, includes bauxite deliveries from Guinea and alumina exports from Greece.
11-Year Bauxite, 8-Year Alumina Supply Deal
Under the agreement:
- Rio Tinto will supply 14.9 million tonnes of bauxite over 11 years, sourced from the CBG mine in Guinea.
- Metlen will provide 3.9 million tonnes of alumina over eight years, with an option for a three-year extension.
This strategic partnership strengthens supply security for both parties and positions them to benefit from the rising global demand for aluminium and its intermediates.
€295.5 Million Alumina Expansion at Agios Nikolaos
Metlen is also investing €295.5 million to expand its alumina refining capacity in Agios Nikolaos, Greece. The project will increase annual output by 400,000 tonnes, boosting current capacity to 1.265 million tonnes.
The investment also includes:
- Energy and transport infrastructure upgrades
- Construction of a gallium production facility
These efforts will enhance Metlen’s vertical integration and export capability, particularly in Europe, as global alumina trade flows evolve.
Financial Momentum Supports Growth
Metlen reported a record EBITDA of €1.08 billion in 2024, up 7% YoY. Despite a slight dip in net profit to €615 million, the metals division delivered €297 million in EBITDA, fueled by a 46% rise in alumina prices and a 7% increase in aluminium prices.
The strategic agreement with Rio Tinto aligns with Metlen’s growth trajectory and commitment to becoming a major player in global aluminium markets. It ensures upstream bauxite access while unlocking higher-margin alumina exports, especially as global aluminium supply chains seek geopolitical diversification and long-term contracts.
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