Egypt and Bahrain are currently in discussions to jointly develop an alumina refinery, a project that will be co-owned by both nations. Alumina, or aluminium oxide, is a key feedstock in the production of aluminium.
This initiative is part of a broader set of 22 memorandums of understanding (MoUs) signed by the two countries during an investment forum held in Cairo on Wednesday. The MoU for the alumina project was signed by the Egyptian Aluminium Company (Egyptalum) and Bahrain's Alba aluminium company.
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What the agreement says
As per the agreement, the two parties will conduct a feasibility study for the construction of the alumina refinery in Egypt, according to a statement from Egypt's cabinet. Egyptalum, the state-controlled entity, is the largest producer of aluminium in Egypt and has plans to expand its smelting operations within the country.
In January 2024, Alba announced a record production of approximately 1.6 million metric tonnes, surpassing the previous year's figures. The alumina refining project is part of a broader set of agreements aimed at setting up joint ventures worth over USD 600 million, as reported by Saudi news outlet Asharqbusiness.
Bahrain's investment in Egypt reached nearly USD 450 million in 2024, making it one of the largest Arab investors in the country. According to Egypt's Minister of Investment and Foreign Trade, Hassan Al-Khateeb, 237 Bahraini companies are now operating in Egypt across sectors like tourism, services, real estate, and industry.
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Image Source: Australian Aluminium Council
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