Trafigura, a global commodity leader, has recently signed a term sheet with the Egyptian Aluminium Company (Egyptalum) and Metallurgical Industries Holding (MIH) to collaborate on establishing a new primary aluminium smelter. This innovative initiative includes the creation of a new company that will oversee the development and operation of the smelter, which is projected to have an impressive capacity of 300,000 tonnes per annum (tpa). Additionally, an adjoining 150,000tpa anode plant will be set up at Egyptalum’s Nag Hammadi site. These new facilities are expected to nearly double the current annual production capacity at the location.
Egyptalum CEO Mahmoud Abdelaleem Agour expressed his excitement about this partnership, stating that it marks a significant milestone for Egypt Aluminium. By joining forces with Trafigura as a strategic investor and long-term offtake partner, Egyptalum is poised to emerge as a top primary aluminium producer not only in Egypt but also across the wider region. The expansion at Nag Hammadi is anticipated to boost production capacity, drive export revenues, and create lasting value for shareholders, employees, and local communities.
Trafigura will play a crucial role in this venture, serving as a minority equity investor, debt provider, and long-term offtake and feedstock supply partner. The total investment for the project is estimated to range between $750m to $900m. This collaboration comes at a time when global aluminium inventories outside China have decreased by six million tonnes over the past decade, leading to low stock levels. The new smelter aims to address this gap by providing a reliable source of primary aluminium, thereby enhancing global supply chain diversification and resilience.
This initiative builds on Trafigura’s longstanding presence in Egypt, where the company has been a major supplier of metals, including alumina and liquefied natural gas, for over two decades. The signing of the term sheet follows Trafigura’s recent investment in a smelter project in Indonesia, aligning with its strategy to secure long-term metal supplies on a global scale.
In March 2026, Trafigura signed a binding take-or-pay offtake agreement with Smackover Lithium to secure battery-grade lithium carbonate from the South West Arkansas project in the US. This move underscores Trafigura’s commitment to securing essential resources for various industries.
“Trafigura to build new aluminium smelter in Egypt” was originally reported by Mining Technology, a GlobalData owned brand. As with any investment or development project, it is essential to seek professional advice before making any decisions based on the information provided.
