Trafigura Pte Ltd., a global company in the raw materials sector, has entered into exclusive negotiations with Egyptian Aluminium Company (Egyptalum) and Metallurgical Industries Holding Company (MIH) to develop a new primary aluminum smelter in Egypt, following the signing of a preliminary agreement announced on May 6, 2026.
The project envisions the creation of a new company responsible for building, owning, and operating a primary aluminum smelter with a capacity of 300,000 tons per year, along with a 150,000-ton-per-year anode plant, within the Egyptalum industrial complex in Nag Hammadi, Upper Egypt.
If finalized, the new facilities would nearly double the current annual production capacity of the complex.
Investments for aluminum supply
The total estimated investment is between 750 and 900 million dollars. Under the preliminary terms, Trafigura will participate as a minority investor in the new company, in addition to acting as a debt provider and counterparty for long-term raw material supply and production off-take agreements.
The initiative is part of a context of pressure on the global aluminum supply. According to Trafigura, over the last decade, markets outside of China have consumed nearly 6 million tons of inventory, leaving stocks at historically low levels.
In this scenario, the new smelter in Egypt would provide an additional source of primary aluminum and strengthen the diversification of the international supply chain.
A high-capacity agreement
The Nag Hammadi complex is currently the main production center for Egyptalum, a company founded in 1969 and considered the only producer of primary aluminum in Egypt.
The company operates as a subsidiary of MIH, an entity linked to the Egyptian Ministry of Public Business Sector, and has an approximate installed capacity of 320,000 tons of primary aluminum per year.
Gonzalo De Olazaval, Head of Metals and Minerals at Trafigura, noted that the signing of the preliminary agreement represents a consolidation point for the project. The executive highlighted that, by leveraging existing facilities, Egypt has the potential to establish itself as a major aluminum producer.
Strategic alliances
For his part, Mohamed Al Saadawi, Chairman of MIH, stated that the agreement reflects the capacity of the Egyptian industrial base to attract long-term commitments from international private sector partners.
He also described the project as one of the most significant industrial investments for Egypt in a generation.
Dr. Mahmoud Abdelaleem Agour, CEO of Egyptalum, indicated that the alliance with Trafigura would lay the groundwork to strengthen the company’s positioning as a regional producer of primary aluminum, in addition to generating export revenue and value for shareholders, workers, and communities linked to the complex.
The signing of the preliminary agreement follows a recent investment by Trafigura in a new smelter under development in Indonesia, reinforcing the company’s strategy to secure long-term metal flows and supply customers in international markets.
Source: https://www.trafigura.com/
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