Trafigura to develop 300,000 tpa smelter and 150,000 tpa anode plant at Nag Hammadi

Deal overview

Trafigura has entered exclusive negotiations with the Egyptian Aluminium Company (Egyptalum) and the Metallurgical Industries Holding Company (MIH) to establish a newly‑incorporated company that will build, 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.

Capacity and financing

The project would nearly double the Nag Hammadi site’s annual production capacity. Total investment costs are estimated between USD 750 million and USD 900 million. Trafigura will participate as a minority equity investor, act as a debt provider, and serve as a long‑term offtake and feedstock supply counterparty.

Market rationale

Trafigura notes that the world outside China has drawn down about 6 million tonnes of aluminium inventory over the past decade, leaving stocks at historically low levels. The new smelter is positioned as an additional source of primary aluminium to support supply‑chain diversification and downstream processing.

Local context and next steps

Trafigura has had a presence in Egypt for more than 20 years and has supplied alumina since 2005, as well as LNG. The term sheet follows Trafigura’s recent investment in a smelter under development in Indonesia, and the parties are progressing negotiations toward financial close.