Vice President Kashim Shettima In Talks With Russian Firm Over ALSCON Resumption

Russian aluminium producer, Rusal, is currently in talks with the Nigerian government over the possible resumption of operations at the Alscon smelter in Nigeria, a facility that was suspended a decade ago due to financial losses.

In 2012, Alscon managed to produce 22,000 tonnes of aluminium, making up 11% of its yearly production capacity. However, operations at the plant were halted by Rusal in early 2013 due to an unreliable gas supply and falling aluminium prices.

Vice President of Nigeria, Kashim Shettima, met with Rusal’s management during the Russia-Africa summit in St. Petersburg to explore the possibilities of restarting production at Alscon. A statement from Shettima’s office underlined the significance of getting the plant back into operation for the benefit of all parties involved.

Rusal, which produced 3.8 million tonnes of aluminium in 2022, confirmed the ongoing discussions but did not provide additional details. The company currently holds an 85% stake in Alscon, with the Nigerian government owning the remaining share.

Notably, Shettima, who is representing President Tinubu at the ongoing Russia-Africa summit, called on Russian companies to leverage the vast potential in Nigeria and to consider investing in strategic areas rather than relying solely on commodity trades.

The Aluminium Smelting Company of Nigeria (ALSCON), located in Ikot Abasi, Akwa Ibom state, was incorporated in 1989 as a joint venture between the Nigerian government and two technical partners, and began operations in 1997. It was purportedly privatized to UC Rusal in 2004 for approximately $250 million. However, in 2012, the supreme court ruled that UC Rusal was not the legitimate owner of the company, leading the Bureau of Public Enterprises (BPE) to reclaim it for its rightful owner – BFIG.

Source: Bushradiogist