Mitsui increases stake in Nippon Amazon Aluminium Co. to increase low-carbon aluminium offtake

Mitsui & Co., a leading Japanese trading company, has strategically increased its stake in Nippon Amazon Aluminium (NAAC) as part of its forward-thinking strategy to expand its decarbonisation and metal business portfolio. This strategic move will significantly enhance Mitsui's access to low-carbon aluminium ingots produced in Brazil, potentially reshaping the aluminium industry.

Mitsui's stake in NAAC, which holds a substantial interest in the Brazilian primary aluminium-producing company Aluminio Brasileiro (Albras), increased to 46 per cent from the previous 21 per cent. While the financial details of the transaction remain undisclosed, the move will boost Mitsui's offtake of Albras' aluminium ingots from 80,000 tonnes per year to 140,000 tonnes per year.

NAAC was established in 1977 as a Japanese investor in the Amazon Aluminium Complex Project. It has invested in Albras and the alumina refinery business. Albras stably produces green aluminium with low CO₂ emissions using renewable energy sources in the Brazilian Amazon region.

Nippon Amazon Aluminium Co., Ltd. (NAAC) was established as a project management company to manage the Amazon Aluminium Complex Project. The Amazon Aluminium Complex Project is a bilateral economic cooperation project for natural resource development between Japan and Brazil to construct and operate an integrated complex composed of an alumina refinery plant and a primary aluminium smelting plant by taking advantage of abundant bauxite ore in the Amazon region and rich hydroelectric resources of Amazon River basin.

The additional aluminium ingots are expected to be primarily supplied to Japanese consumers, continuing Mitsui's focus on delivering low-carbon aluminium to Japan. NAAC, which holds a 49 per cent stake in Albras, is key in producing 450,000 tonnes of aluminium ingots annually. Its strong emphasis is on reducing carbon dioxide emissions using renewable energy sources.

Mitsui's decision to increase its stake in NAAC is not just a business move but a significant step in the global shift towards decarbonisation. The company's anticipation of an ongoing tight supply of low-carbon aluminium, increasingly required for various industries, including automotive, aerospace, construction, packaging, and electric wiring, underscores its role in this important trend.

In addition to its expanded role in the Brazilian aluminium sector, Mitsui has invested in India-based MTC Group, a scrap metals trader and manufacturer. This investment aims to capitalise on the rising demand for metals in India, further solidifying Mitsui's position in the global metals market.