Trafigura partners Egyptalum, MIH on $900 million Egypt smelter deal

Trafigura, a leading independent global commodities trader, has entered exclusive discussions with Egyptalum and Metallurgical Industries Holding Company (MIH) to develop a new primary aluminium smelter in Egypt, in a deal valued at between $750 million and $900 million, marking one of the country’s most significant industrial expansion plans in recent years.

The partners plan to form a new company to build, own and operate a 300,000-tonne-per-year aluminium smelter and a 150,000-tonne-per-year anode plant at Egyptalum’s Nag Hammadi complex. Once completed, the project is expected to nearly double the site’s current production capacity. 

Under the structure being negotiated, Trafigura will take a minority equity stake in the venture while also providing debt financing. The commodities group will additionally serve as a long-term offtake and feedstock supply partner, strengthening its position in global aluminium supply chains.

The project comes as aluminium inventories remain tight across global markets, increasing pressure on manufacturers and supply chains. The new smelter is expected to add fresh supply at a time when producers and buyers are looking to diversify sourcing and strengthen downstream industrial capacity.

Egypt eyes bigger role in aluminium 

Trafigura Head of Metals and Minerals Gonzalo de Olazaval described the agreement as an important step for all parties involved. 

“We are pleased to be working with Egyptalum, a company with deep experience in the aluminium sector, and to have the support of the Egyptian government through MIH,” he said. 

“By building on existing facilities, Egypt has the potential to become a major producer, and we look forward to supporting that growth.” 

Egyptalum CEO Dr. Mahmoud Abdelaleem Agour said the partnership could reshape the company’s position in regional aluminium markets. 

“Working with a global commodities group such as Trafigura, both as an investor and long-term offtake partner, gives us a strong platform for expansion,” Agour said. 

“The Nag Hammadi expansion will nearly double production capacity, support exports and create long-term value for employees, shareholders and surrounding communities.” 

MIH Chairperson Mohamed Al Saadawi said the investment reflects growing international interest in Egypt’s industrial sector. 

“The signing of this term sheet sends a clear message that Egypt continues to attract long-term investment from major international partners,” he said. “Trafigura’s decision to invest alongside Egyptalum highlights confidence in the country’s industrial base and manufacturing potential.”

Trafigura expands regional footprint 

Founded in 1993, Trafigura has become one of the world’s largest independent commodity traders, with operations spanning oil, metals, minerals and liquefied natural gas across more than 150 countries. 

The company has also been active in southern Africa in recent times, joining Vitol and Glencore in bidding for a stake in South Africa’s Natref refinery, reflecting renewed investor interest in the region’s energy and industrial assets. 

Egyptalum anchors national aluminium output 

Egyptalum, established in 1969, is Egypt’s only primary aluminium producer and one of the largest in Africa. The Nag Hammadi facility currently operates a 320,000-tonne-per-year smelter and remains central to the country’s aluminium export base. 

Metallurgical Industries Holding Company (MIH), which oversees multiple industrial assets across Egypt, has interests spanning steel, iron products, ceramics, glass, and ferroalloys, positioning it as a key state-linked industrial holding platform.