Trafigura, Egyptalum Begin Talks on $900M Egypt Aluminum Smelter Project
Aluminum | 2026-05-07 07:00:53
The investment is estimated at between $750 million and $900 million.
By Paul Ploumis
SEATTLE (Scrap Monster): Commodity trader Trafigura has entered exclusive negotiations with Egyptalum and Metallurgical Industries Holding Company (MIH) to develop a major aluminum smelter project in Egypt, aiming to strengthen global primary aluminum supply amid ongoing market disruptions.
Under the proposed agreement, the partners will establish a new company to build, own, and operate a 300,000-tonne-per-year primary aluminum smelter and a 150,000-tonne anode plant at Egyptalum’s Nag Hammadi complex. The investment is estimated at between $750 million and $900 million.
Trafigura will participate as a minority equity investor, debt provider, and long-term feedstock supplier and offtake partner. Once completed, the project is expected to nearly double the production capacity of the existing facility.
The development comes as global aluminum markets face tightening supply due to disruptions in the Middle East, including attacks affecting Gulf smelters. Trafigura noted that aluminum inventories outside China have fallen sharply over the past decade, increasing the need for diversified and resilient supply chains worldwide.
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What is the biggest driver behind the new Egypt aluminum smelter project?
Frequently Asked Questions
- What is the purpose of the Trafigura-Egypt aluminum project?
The project aims to expand Egypt’s aluminum production capacity and improve global primary aluminum supply resilience.
- What facilities are planned under the agreement?
The project includes a 300,000-tonne-per-year primary aluminum smelter and a 150,000-tonne anode plant.
- Why is the project strategically important now?
Global aluminum markets are facing supply disruptions and declining inventories outside China, increasing the need for diversified supply sources.
