Significant steps toward the implementation of a new method for recovering metals from residues of old mining operations have been made by Metlen. This initiative, if successfully completed, will position the domestic group at the forefront of global innovation, yielding significant economic benefits.
Metlen’s engineers had been working for years on developing this technology, and in 2024, they finalized a pioneering method for metal recovery. Immediately after, Metlen established a pilot plant in Sindos with an investment of €30 million to test the theory in practice.
According to sources from Business Daily, the initial results from the operation of the Sindos plant are particularly encouraging, having achieved the production of high-purity copper from mining residues transported from Sometra, an old group facility in Romania.
The ambitious residue utilization project is code-named Project Sometra, as the idea for this investment was conceived years ago at Sometra’s facilities in Romania.
If the experimental production from residues is confirmed under industrial production conditions, the group plans to quickly scale up the method for large-scale implementation, aiming to utilize old mining residues through the establishment of major metal recovery plants.
It should be noted that metals such as gold, silver, copper, nickel, and even rare earth elements can be extracted from old residues. Market experts believe the group is likely to focus on copper and ferronickel, with the latter being particularly promising due to the significant residues left by LARCO.
According to analysts, if the group succeeds in achieving large-scale metal recovery, it will gain a significant competitive advantage internationally, along with substantial economic benefits due to the high global demand for metals.
Furthermore, the environmental aspect is significant, as the removal of mining residues can drastically reduce environmental risks associated with them, such as the leakage of toxic substances.
Project Sometra
During the recent presentation of the major investment for gallium production and the increase in alumina production in Boeotia, Metlen executives stated that the Project Sometra is in an advanced stage and has been internationally patented.
In a presentation to journalists, Dimitris Stefanidis, Chief Executive Director of Metallurgy at Metlen, highlighted the great value offered by the Sometra project in Sindos.
“As the Mytilineos group, we had the Sometra plant in Romania, which produced zinc and lead and over time accumulated residues from an old plant that ceased operations. We took residues from there to attempt to extract what was inside—mainly copper and zinc. This facility was created to enable the recovery of metals from old mining operations,” emphasized Mr. Stefanidis.
Gallium: Challenging Chinese Production Costs
Regarding the group’s major €295 million investment, which includes expanding into gallium production with an annual target of 50 tons, it is estimated that the group has achieved extremely competitive production costs.
Sources close to the company emphasize that launching an investment in gallium production requires securing highly competitive production costs. They explain that although the current price of gallium approaches $1,000 per kilogram, this may not always be the case. If someone proceeds with a production cost of $700, they could face significant exposure. If the Chinese—who currently have a monopoly on gallium production—decide to open their borders, the price could drop to $200. Only those capable of competing at such levels can remain secure.
At the same time, group executives stress that the gallium investment must be evaluated in conjunction with alumina and the significant increase in its production, as their combination maximizes economic benefits for the group.
The investment will result in an annual production capacity of 2 million tons of bauxite and a substantial increase in alumina production capacity by approximately 50%, reaching 1,265,000 tons from the current 865,000 tons.
The same sources underline that high alumina prices reflect strong demand and the gradual depletion of global bauxite reserves. Metlen has “locked in” bauxite reserves in Ghana and recently acquired Imerys Bauxites, ensuring long-term access to this valuable mineral.
New Developments in Metals
Additionally, sources reveal that the group is preparing two more initiatives in new metals, supported by expertise from Sindos.
Analysts believe that developing new methods for metal recovery could not only boost investor interest in Metlen but also broaden the investment profile of players involved with the group.
“A new innovation that significantly reduces production costs aligns well with Metlen’s strategy. It is also important because it will contribute to reducing the leveraged cost of the units,” an analyst told Business Daily.