Athens-listed industrial and energy company Metlen Energy & Metals has confirmed that it will proceed with the implementation of a new large-scale investment in the production of bauxite, alumina and gallium, in Greece.

In announcing the company’s final investment decision on the project on January 16, CEO and chairperson Evangelos Mytilineos says the landmark project, which will be based in Agios Nikolaus, represents a milestone in the history of the metallurgy sector.

He adds that the €295-million project will significantly enhance production capacity of critical minerals in Europe and incorporate gallium into industrial production for the first time.

The planned capacity for the project includes two-million tonnes a year of bauxite, 1.2-million tonnes a year of alumina – up from 865 000 t/y currently – and 50 t/y of gallium.

Completion of the works and production startup is scheduled for 2026 for bauxite, with alumina and gallium production planned to begin gradually from 2027 before ramping up to full-scale operation by 2028.

The company’s investment in the project will include road infrastructure, flood protection and port expansion upgrades.

Gallium is produced as a byproduct of certain qualities of bauxite during the refining process into alumina, with its production currently being almost entirely concentrated in China.

China’s decision to impose export restrictions on gallium in July 2023 highlighted the world’s vulnerability in this regard, hence Metlen’s decision to help diversify supply sources.

Gallium is typically used for integrated circuits in computing and telecommunications, LED lights and permanent magnets.

“The decision by Metlen to proceed with the implementation of a new, landmark industrial investment in the production of bauxite, alumina and gallium strengthens Europe’s self-sufficiency in critical raw materials and bolster’s Greece’s strategic position in the global landscape.

“Additionally, it shields the European industry from external dependencies,” notes Mytilineos, explaining that the European Commission has granted the project a sovereignty seal in recognising the project’s significant contribution to critical minerals supply strengthening.

Metlen has reaffirmed its role as a leader in the transition toward greener and more resilient industrial production, and proven its commitment to innovation and sustainable development, Mytilineos concludes.