Trafigura signs term sheet for the development of new aluminium smelter in Egypt
Cairo, 6 May 2026 – Trafigura Pte Ltd. ("Trafigura" or the "Company"), a global leader in the commodities industry, today entered into exclusive negotiations with the Egyptian Aluminium Company ("Egyptalum") and the Metallurgical Industries Holding Company ("MIH") to develop a new primary aluminium smelter in Egypt, following the signing of a term sheet.
Trafigura, Egyptalum and MIH intend to establish a newly-incorporated company that will construct, own and operate a 300,000 tonne per annum primary aluminium smelter, alongside a 150,000 tonne per annum anode plant, at Egyptalum's Nag Hammadi complex. The new facilities would nearly double the site's current annual production capacity.
Trafigura will participate as a minority equity investor in the new company, as well as a debt provider and long-term offtake and feedstock supply counterparty. Total investment costs for the project are estimated at between USD 750 million and USD 900 million.
Over the past decade, the world outside China has drawn down 6 million tonnes of aluminium inventory1, leaving stocks at historically low levels. Against this backdrop, the new smelter will provide an important additional source of primary aluminium — supporting supply chain diversification and resilience across global markets, while underscoring the strategic importance of downstream processing.
This project builds on Trafigura's longstanding commercial relationship with Egypt, where the Company has been present for over 20 years and is currently one of the largest suppliers into the country of metals — including alumina, which it has supplied since 2005 — and liquefied natural gas (LNG).
Gonzalo De Olazaval, Head of Metals and Minerals, Trafigura, said: “A significant milestone has been reached with the signing of the term sheet and the start of exclusive negotiations. We are pleased to be working with Egyptalum, a counterparty with proven expertise in the aluminium industry, and to have the support of the Egyptian government through MIH. By building on existing facilities, Egypt has the potential to become a major producer, and we look forward to supporting the country in realising that ambition.”
Eng. Mohamed Al Saadawi, Chairman, Metallurgical Industries Holding Company (MIH), commented: “The signing of this term sheet is a powerful signal that Egypt’s industrial base continues to attract serious, long-term commitment from leading international private sector partners. Trafigura’s decision to co-invest alongside a state-owned entity like Egyptalum demonstrates the confidence that global capital has in Egypt’s economic trajectory and the strength of our industrial platform. MIH is fully committed to supporting the success of this project, which represents one of the most significant industrial investments Egypt has seen in a generation.”
Dr. Mahmoud Abdelaleem Agour, Chief Executive Officer, Egyptian Aluminium Company (Egyptalum), said: “This term sheet marks a defining moment for Egypt Aluminium. By partnering with a global commodity leader of Trafigura’s calibre — as both a strategic investor and long-term offtake partner — we are laying the foundation for Egyptalum to emerge as a leading primary aluminium producer not only in Egypt, but across the wider region. The expansion at Nag Hammadi will nearly double our production capacity, generate significant export revenues, and create lasting value for our shareholders, our workforce, and the communities we serve. We look forward to progressing this partnership towards financial close.”
The signing of this term sheet follows Trafigura's recent investment in a new smelter under development in Indonesia and underscores the Company’s strategy to secure long-term flows of metal to supply customers around the world.
1Source: Trafigura Research
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Trafigura’s Press Office: +41 (0) 22 592 4528 or media@trafigura.com
About Trafigura
Trafigura is a leading commodities group, owned by its employees and founded over 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through MorGen Energy and joint venture Nala Renewables.
The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, the Impala Terminals joint venture and Greenergy, supplier and distributor of transportation fuels and biofuels. The Group employs approximately 14,500 people, of which over 1,400 are shareholders, and operates in over 150 countries.
Visit: www.trafigura.com
About Egyptian Aluminium Company (Egyptalum)
Egyptian Aluminum Company (S.A.E.), known as Egyptalum, is Egypt’s sole primary aluminum producer and one of the largest in Africa. Founded in 1969 and headquartered at its integrated industrial complex in Nag Hammadi, Upper Egypt, the company commenced commercial production that same year and has grown to become a cornerstone of Egypt’s industrial and export economy. Egyptalum has been listed on the Egyptian Exchange (EGX) since July 1997 (ticker: EGAL) and operates as a subsidiary of the Metallurgical Industries Holding Company (MIH), which is owned by the Egyptian Ministry of Public Business Sector and holds approximately 89.8% of the company’s share capital.
The Nag Hammadi complex spans 6.3 million square meters of industrial area and comprises a primary aluminum smelter, a casting house, a rolling mill, an anode plant, and associated utilities. The smelter is supplied with hydroelectric power from the Aswan High Dam and currently has an installed production capacity of approximately 320,000 tons per annum (tpa) of primary aluminum. The company’s product portfolio includes ingots, wire rods, billets, slabs, T-bars, foundry alloys, hot and cold rolled flat products, and aluminum extrusion profiles.
Visit: www.egyptalum.com.eg