Metlen and Rio Tinto Sign Strategic Bauxite and Alumina Supply Deal

Metlen

Long-Term Agreement Strengthens Supply Chains and Expands Alumina Trade

Metlen Targets Alumina Growth with €295.5mn Investment in Greece

Greek aluminium and energy conglomerate Metlen, formerly known as Mytilineos, has signed a long-term supply agreement with Rio Tinto, the Anglo-Australian mining giant. The deal ensures mutual access to critical raw materials, reinforcing both firms' strategic positions in the aluminium value chain.

Rio Tinto to Deliver Bauxite from Guinea Starting 2027

Under the agreement, Rio Tinto will supply Metlen with 14.9 million tonnes of bauxite over 11 years, sourced from the CBG mine in Guinea. This move secures a steady bauxite flow for Metlen, aligning with its downstream processing plans. Simultaneously, Metlen will provide Rio Tinto with 3.9 million tonnes of alumina across eight years, with a potential three-year extension.

Both supply streams are scheduled to begin in 2027, positioning both companies for long-term operational synergy.

Greek Expansion to Boost Alumina Capacity by 400,000t/yr

Metlen also confirmed a €295.5 million investment to expand its alumina production at Agios Nikolaos, Greece. This will add 400,000 tonnes/year to its current capacity of 865,000 tonnes, solidifying Metlen’s presence in the global alumina market.

The investment package includes upgrades to energy and transport infrastructure and new gallium production facilities. These developments will bolster Metlen's vertical integration and export potential, particularly as global alumina demand rises.

Record Financials Back Strategic Growth Plan

In 2024, Metlen achieved a record EBITDA of €1.08 billion, up 7% year-over-year. Although net profits dipped slightly to €615 million, the metals division surged, posting €297 million in EBITDA, driven by a 46% rise in alumina prices and a 7% increase in aluminium prices.

While the energy segment saw a 1.7% decline in EBITDA to €753 million, the overall performance reinforces Metlen’s financial strength ahead of its expansion and supply commitments with Rio Tinto.

The company stated the deal will deliver dual benefits: securing upstream bauxite supply and maximizing profit through expanded alumina exports under competitive global terms.