Emirates Global Aluminium (EGA) has agreed an eight-year deal starting from 2024 to procure 15.6Mt alumina from Alcoa

Prior to the agreement with Alcoa, EGA’s 2Mtpy-rated Al Taweelah alumina refinery in Abu Dhabi reportedly accounted for approximately half of the company’s total alumina requirements. As such, the deal means that EGA has tied up a secure, long-term supply of feedstock for its primary aluminium operations in the Middle East and Alcoa will become the company’s largest third-party supplier. EGA also operates a bauxite mine and associated export facilities in Guinea.

US-based aluminium producer Alcoa produces alumina at three locations across Western Australia and is a major producer of primary aluminium. The supply agreement represents a significant proportion of Alcoa’s annual third-party alumina sales.

The deal comes not long after news of Century Aluminium’s recent acquisition of a majority stake in Jamalco and follows a trend for upward integration and securing feedstock in the aluminium value chain. Alumina is the major raw material used in primary aluminium production and is produced by the refining of bauxite. Such market activity comes at a time when Chinese aluminium producers continue to strengthen their dominance of the industry, accounting for a little under 60% of global primary supply last year according to International Aluminium Institute data.

Aluminium’s key role in energy transition applications means that the metal has a strong outlook over the coming years.