Upstream weekly recap: METLEN secures long-term bauxite supply deal with Rio Tinto; NALCO unveils ambitious INR 30,000 crore expansion strategy
Aluminium remains a cornerstone of the global economy, with the rising demand for green metal highlighting its lasting significance. Despite challenges and periodic disruptions, the push for sustainable aluminium continues to gain momentum. Notable advancements have taken place in the upstream sector, encompassing bauxite mining, alumina refining, and primary aluminium production. To begin with, METLEN Energy & Metals has signed two long-term strategic agreements with global mining and metals giant Rio Tinto to reinforce its bauxite and alumina supply chain. NALCO's announcement of INR 30,000 crore (USD 3.45 billion) investment in aluminium business expansion, revealed by Union Minister of Coal & Mines and Parliamentary Affairs Pralhad Joshi, marks its first major capital expenditure in recent years. In a significant development, Larsen & Toubro (L&T), India's largest listed infrastructure firm, has announced that its Minerals & Metals (M&M) business vertical has secured a significant contract from Hindalco.
METLEN Energy & Metals, formerly MYTILINEOS Energy & Metals, has signed two long-term strategic agreements with global mining and metals giant Rio Tinto to enhance its bauxite and alumina supply chain. Under the first agreement, Rio Tinto will supply METLEN with approximately 14.9 million tonnes of bauxite from the CBG mine in Guinea over 11 years, from 2027 to 2037.
To know more: https://www.alcircle.com/news/metlen-expands-bauxite-sourcing-with-11-year-rio-tinto-partnership-113356
NALCO's announcement of INR 30,000 crore (USD 3.45 billion) investment in aluminium business expansion, revealed by Union Minister of Coal & Mines and Parliamentary Affairs Pralhad Joshi, marks its first major capital expenditure in recent years. The investment includes the establishment of an INR 17,000 crore (USD 1.95 billion) aluminium smelter capacity.
In a significant development, Larsen & Toubro (L&T), India’s largest listed infrastructure firm, has announced that its Minerals & Metals (M&M) business vertical has secured a major contract from Hindalco. The project entails the engineering, procurement, construction, and installation (EPCI) of an 850 KTPA Greenfield alumina refinery in Odisha.
To know more: https://www.alcircle.com/news/indias-largest-infrastructure-giant-larsen-toubro-clinches-major-alumina-refinery-deal-113354
Internationally, spot alumina transactions have been moderately active over the past two months, with 21 recorded deals since December 10. Prices have shown a sharp downward trend, with the FOB price of Western Australian alumina falling to USD 538 per tonne as of February 14—a decline of USD 272 per tonne from the December 2024 peak of USD 810 per tonne, equivalent to approximately RMB 2,000 per tonne.
The proposed ban on Russian primary aluminium in the EU's 16th sanctions package risks causing unnecessary economic harm without achieving its intended objectives. If approved by EU ministers, this measure could endanger the entire downstream European aluminium value chain.
Canyon Resources Limited is pleased to announce the appointment of Dean Horton as a Non-Executive Director, effective February 19, 2025. His addition aligns with the Board’s strategy of assembling a skilled, diverse, and experienced team to drive the development and future production of the Minim Martap Bauxite Project in Cameroon.
To know more: https://www.alcircle.com/press-release/canyon-bolsters-board-with-the-appointment-of-dean-horton-113359
This week, the domestic bauxite market remained largely stable. As of Thursday, the transaction price for bauxite with an Al/Si ratio of 5.0 and 60% alumina content in Shanxi, excluding VAT, for self-pick-up at crushing plants, ranged from RMB 640 to 670 per tonne.
During last Friday's night session, the most-traded alumina 2505 contract opened at RMB 3,346 per tonne, fluctuating between a high of RMB 3,414 per tonne and a low of RMB 3,335 per tonne before closing at RMB 3,368 per tonne, marking a 0.66% increase. Open interest decreased by 4,000 lots to 166,000 lots.
During the night session, the most-traded alumina 2505 contract opened at RMB 3,429 per tonne, hitting a high of RMB 3,429 per tonne and a low of RMB 3,383 per tonne before closing at RMB 3,401 per tonne, down 0.82%. Open interest rose by 4,173 lots to 167,000 lots.
To know more: https://www.alcircle.com/press-release/mine-quotations-lowered-alumina-may-continue-downward-trend-113326
In the overnight session, the most-traded alumina 2505 futures contract opened at RMB 3,449 per tonne, hitting a high of RMB 3,449 per tonne and a low of RMB 3,408 per tonne before closing at RMB 3,420 per tonne, down 0.87%. Open interest increased by 1,424 lots to 158,000 lots. Regarding spot alumina prices, SMM alumina was quoted at RMB 3,329 per tonne on February 18, marking a RMB 2 per tonne decline from the previous trading day.
To know more: https://www.alcircle.com/press-release/fundamentals-are-mixed-alumina-expected-to-fluctuate-113342
Japan has formally requested an exemption from the 25% tariffs on steel and aluminium proposed by US President Donald Trump, along with other reciprocal tariffs, according to a report by Tokyo-based Kyodo News.
To know more: https://www.alcircle.com/news/japan-and-vietnam-pilot-through-individualistic-route-to-deal-with-trumps-tariff-113328
Mining giant Rio Tinto (NYSE:RIO), a key player in the metals and mining industry with a market capitalization of USD 102.4 billion, has announced several changes to its board of directors, with multiple members set to step down later this year. The restructuring was initiated by chairperson Dominic Barton, reflecting the company's strategic direction across its aluminium and other business segments.
To know more: https://www.alcircle.com/press-release/rio-tinto-announces-several-board-changes-for-fy25-113349
This morning, the most-traded SHFE aluminium contract gradually trended slightly downward, fluctuating around RMB 20,550 per tonne. In the East China market, aluminium prices reached higher levels, dampening restocking sentiment among downstream buyers, with most transactions driven by rigid demand.
At the World Government Summit 2025 in Dubai, Coordinating Minister for Economic Affairs Airlangga Hartarto met with Emirates Global Aluminium (EGA) CEO Abdulnasser Ibrahim Saif Bin Kalban on Wednesday, February 12. Their discussion centered on strengthening EGA's cooperation plan to enhance aluminium production, particularly through the development of a bauxite-processing smelter in Indonesia.
Vedanta Aluminium, India’s leading aluminium producer, has introduced an AI-powered drone system at its Jamkhani coal mine in Odisha. Operational since February 13, 2025, the drone offers real-time solutions for blasting clearance and danger zone monitoring.
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