Alba chooses Egypt for its first alumina refinery

The MoU has been signed to explore and get into a collaborative relationship that will provide the opportunity to develop an alumina refinery in Egypt in accordance with an offtake agreement and equity participation. 

His Excellency Shaikh Salman bin Khalifa AL Khalifa, the Minister of Finance and National Economy, alongside the Chairman of Mumtalakat Holding Company BSC and the Chairman of the Board of Directors of Metallurgical Industries Holding Co, have signed the MoU. 

Egypt- the new hub for alumina refineries

Egypt is able to keep attracting the attention of global industrial stakeholders since it will still place itself on the map as an alumina refiner's dream location. With the amount of bauxite reserves, especially the ones situated along the Red Sea coast, Egypt will be able to provide a readily available economic feedstock on which to base alumina production. 

The Suez Canal, as Egypt's most strategic element of transportation, serves as a critical maritime link allowing goods arriving to Egypt via ship to effortlessly connect Europe, Asia and Africa through local port facilities. As well, Egypt's land transport and rail networks complement its immediate capabilities for logistics.  

Egypt has allocated a total of EGP 94 billion (USD 1.94 billion) approximately for the 2024/25 fiscal year covering its transportation networks. EGP 74.1 billion (USD 1.53 billion) was allocated for the National Authority for Tunnels and EGP 13.5 billion (USD 278.1 million) for Egyptian National Railways. 

Egypt is maximising its cross-border trade with the rest of the Gulf Cooperation Council (GCC) through new infrastructure and digital transformation. The development of its Old Port and New Port at Ain Sokhna, in addition to the expansion of the Suez Canal Economic Zone which is the new port at Alexandria, positions Egypt as a major transactional freight player and trade hub. Egypt and Saudi Arabia have also reached an agreement to mutually recognize Authorised Economic Operator (AEO) programs, clearing customs for both countries when exporting and closing cargo faster. 

In conjunction with the operational improvements in Egypt, there is the emergence of digital tools such as automated customs clearance, blockchain for supply chain transparency, and e-invoicing that lowers paperwork, reduces errors and improves trust for exporters, importers and authorities alike. 

Egypt is making progress on the Electric Express Train (EET) project, which aims to create a transformative high-speed rail network to improve national connectivity and promote sustainable economic development. As of June 2024, construction is over 50 per cent complete for the Blue and Red Lines with approximately 1,325 kilometers of track and 39 stations. 

SYSTRA and Egis are providing Project Management Consultancy and are managing the integration and coordination of the various components of the project. The first Velaro high-speed train, from Siemens, has completed testing in Germany; this is a major project milestone. These developments highlight Egypt's commitment to modernising its transportation infrastructure and the EET serves as the backbone of this future growth and regional integration.

Presence of bauxite in Egypt & its surrounding region 

Egypt, though not known how much it mines bauxite, is otherwise strategically located surrounded by bauxite hubs like Ghana, Guinea, the Ivory Coast. and others have secured sources of bauxite. As per the data of Mining Technology, Guinea has estimated bauxite reserves of 7.4 billion tonnes, which is around 25 to 33 per cent of the world's reserves. Most of the bauxite ore is located in the high-grade deposits in the Boké Region, where primary mining operations tend to concentrate. With its location, bauxite resources, mining infrastructure, investment opportunities, and stable access to a long-term global bauxite supply chain for aluminum production, Guinea is emerging as a potential key investor destination.

Ghana has a strong bauxite reserve portfolio across several high-potential mining areas. In 2021, approximately 708,000 tonnes of bauxite were produced in Ghana. Ghana's bauxite reserves are found across three prominent regions: Awaso in the Western North Region, Ghana's first mining area and active since the 1940s; Nyinahin in the Ashanti Region, with the most extensive reserve base of roughly 700 tonnes; and Kyebi in the Eastern Region, with another 160 tonnes of reserves. The multi-site range, combined with an established mining footprint, provides Ghana with a relevant strategic positioning in the global bauxite marketplace. 

Ivory Coast hosts a sizable bauxite reserve at Bongouanou in the Moronou region, which is estimated to be around 35 million tonnes. The deposit is operated by Lagune Exploitation Bongouanou (LEB), with an annual production capacity of 1.2 million tonnes. LEB is exporting its product to China and other countries. With the support of the government and a great investment climate, the Ivory Coast is going to be the place where investment in the bauxite sector develops.

Sierra Leone has essential reserves of bauxite, primarily located in Gondama, Port Loko, Kambia and Mamaliki deposits. Of these deposits, the Gondama deposit has particularly rich bauxite, estimated to have 100 million tonnes of high-grade bauxite reserve. Sierra Mineral Holdings operates the Gondama deposit I Limited (SMHL), which has a lease area of 321.7 km² on the same geological belt containing Guinea's famous bauxite deposits. 

In 2022, the mine produced approximately 910,000 tonnes of bauxite, which was supplied as raw material for Vimetco's alumina refinery in Romania. While there have been recent operational pauses which were based on market conditions, it is evident that bauxite will remain a critical component of Sierra Leone'sLeone's mining sector.

Alba has the opportunity to source bauxite from the above-mentioned locations in Egypt to commence the operation of its newly signed MoU for an alumina refinery. 

Alba's bauxite exploration in Egypt

On May 24 2023, Alba had strengthened its industrial cooperation with the aluminum sector in Egypt after a high-level meeting in Cairo, attended by Alba Chairman Shaikh Daij bin Salman bin Daij Al Khalifa and Egypt's Minister of Public Enterprises Sector, Dr Eng. Mahmood Kamal Esmat. 

The meeting included Alba CEO Ali Al Baqali, Metallurgical Industries Holding Company Managing Director, Eng. Mohammed Al Saadawy and Egyptalum CEO, Dr Mahmoud Agour, to specifically discuss achieving cooperation agreements and joint investments throughout the aluminum value chain domestically. 

Particularly in relation to upstream production of bauxite, as a significant input that is highly prised. At the meeting, Shaikh Daij noted how favourable Egypt's investor climate was and Alba's interest in a feasibility study with the Metallurgical Industries Holding Company for an eventual partnership. 

Dr Esmat reiterated the historical ties between Bahrain and Egypt, while highlighting the need for private-sector engagement, the establishment of public-private partnerships and increased regional flows of investment to enhance opportunities for economic integration and growth. 

Current alumina refineries in Egypt

There are presently no functioning alumina refineries in Egypt, with the country mainly importing alumina for aluminum production. Nevertheless, Egyptalum, a company producing high-quality aluminum and its related products, is in the process of preparing for a large-scale alumina refinery with the ability to make roughly 2 million tonnes per year as part of a larger strategic expansion initiative to minimise imports and increase local domestic product.  

Egyptalum is currently preparing to undertake a significant expansion effort to increase production capacity and lessen dependency on imported raw materials. In February 2025, the Minister of the Public Business Sector, Eng. Mohamed Shimi visited Egyptalum's Nag Hammadi factory, indicating a discussion of projects related to a complete upgrade of Egyptalum. 

Among these projects is the rehabilitation of the existing smelter to give it another 20 years of operability, an increased production capacity of 200,000 tonnes and the building of a new factory with an additional capacity of 600,000 tonnes. 

Future innovative projects discussed in the expansion include, among other possibilities, the development of an alumina refinery, wire rod manufacturing and reclaiming slag to make it usable. There is plenty of potential to develop local industry, foster investment and ensure that Egyptalum becomes competitive on a global level. 

This shall mark Alba's first alumina refinery located in Egypt, which is deemed to be just the beginning.