Egyptalum strategizes $900 million aluminium smelter expansion

Egyptalum plans a $900 million aluminium smelter expansion at its Nag Hammadi, Egypt smelter. It has signed an agreement for a proposed extension at its Nag Hammadi, Egypt smelter.

It will work alongside Trafigura to study a planned 300, 000 tonnes per year expansion at its aluminium smelter complex. The expansion project represents one of the largest capital investments in the company’s history.

It includes the construction of a primary aluminium smelter with a capacity of approximately 300,000 tonnes per annum, alongside a 150,000-tonne-per-annum anode plant. Once completed, the project will nearly double Egyptalum’s current output,

The initial investment is $900 million.

EFG Hermes investment bank will be sole financial advisor to the Metallurgical Industries Holding Company (MIH) and Egyptalum on the project. It will advise on the equity and debt raising processes.

The announcement of the term sheet signing was made simultaneously by MIH and Egyptalum. Under the partnership, a newly incorporated project company that will be majority-owned by MIH and Egyptalum will serve as the vehicle for developing, owning, and operating the production facility.