Egyptian Aluminium Company (Egyptalum) 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.
Trafigura will participate as a minority equity investor, a debt provider, and a long-term offtake and feedstock supply partner.
Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, said: “We are proud to be advising MIH and Egyptalum on this landmark transaction, which would successfully bring together a world-class local champion and a global leader in the commodities industry for a project of genuine national significance.
"This is a critical milestone in the journey toward doubling Egyptalum's production capacity and reinforcing Egypt’s standing on the global stage."