Greece's METLEN gets 90 million euros financing for gallium extraction project

LONDON, Jan 15 (Reuters) - Greek aluminium producer METLEN Energy & Metals MTLN.L has secured 90 million euros ($104 million) of financing from the European Investment Bank for a project to extract gallium, on which China has imposed export controls.

China's clampdown on critical minerals such as gallium, used in defence applications and semiconductors, has spurred the West to build its own domestic supplies of the elements.

Last November, China said it had suspended a ban on exports of gallium, antimony and germanium to the U.S., but the metals remain subject to broader export controls requiring shippers to first obtain licences from Beijing.

METLEN said on Thursday it secured the EIB financing for the project, which is due to boost processing of bauxite and extract gallium from the raw material used to make aluminium.

The Greek company, Europe's largest producer of bauxite, will use the financing to support bauxite mining and at its industrial complex, where the gallium production facility will be developed, it added.

The gallium facility has been named a strategic project under the EU's Critical Raw Materials Act, which seeks to increase domestic supply of critical raw materials, many of which are dominated by China.

METLEN aims to launch gallium production in 2027, ramping up to an annual output of 50 metric tons by 2028.

($1 = 0.8617 euros)