Trafigura Partners Egyptalum on Major Aluminium Smelter Expansion in Egypt
Trafigura and Egyptalum Plan Up to US$900 Million Aluminium Smelter Project in Egypt
Global commodities trader Trafigura has entered into exclusive negotiations with Egyptian Aluminium Company (Egyptalum) and Metallurgical Industries Holding Company (MIH) to develop a major new primary aluminium smelter in Egypt at an estimated cost of between US$750 million and US$900 million.
Under the proposed agreement, the parties plan to establish a new company that will build, own, and operate a 300,000-tonne-per-year primary aluminium smelter and a 150,000-tonne-per-year anode plant at Egyptalum’s Nag Hammadi industrial complex.
Once operational, the new facilities are expected to nearly double the site’s current aluminium production capacity, significantly strengthening Egypt’s position in the regional and global aluminium market.
Trafigura will participate in the venture as a minority equity investor, debt provider, and long-term offtake and feedstock supply partner.
The company said global aluminium inventories remain at historically low levels, making the project strategically important for improving supply chain diversification and strengthening the resilience of global aluminium markets.
Trafigura’s Head of Metals and Minerals, Gonzalo De Olazaval, described the signing of the term sheet and the start of exclusive negotiations as a significant milestone.
“We are pleased to be working with Egyptalum, a company with proven expertise in the aluminium industry, and to have the support of the Egyptian government through MIH,” he said.
He added that by leveraging existing infrastructure at Nag Hammadi, Egypt has the potential to become a major global aluminium producer.
Egyptalum Chief Executive Officer Mahmoud Abdelaleem Agour said the partnership with Trafigura would position the company as a leading primary aluminium producer in both Egypt and the wider region.
“The expansion at Nag Hammadi will nearly double our production capacity, generate substantial export revenues, and create long-term value for shareholders, employees, and local communities,” he said.
Mr Agour added that the company looks forward to advancing the partnership toward financial close.
Meanwhile, MIH Chairperson Mohamed Al Saadawi described the project as one of the most significant industrial investments Egypt has seen in decades.
He said Trafigura’s decision to co-invest alongside a state-owned enterprise demonstrates growing international confidence in Egypt’s industrial base and long-term economic prospects.
The project is expected to support Egypt’s broader industrialisation strategy, boost exports, create jobs, and strengthen the country’s role in global downstream metals processing and manufacturing supply chains.
