By Ogenyi Ogenyi, Uyo
The management of the Aluminum Smelters Company of Nigeria (ALSCON),in Ikot Abasi Local Council of Akwa Ibom, has said over $500m is needed to rehabilitate equipment and machines and restart production in the factory.
This is as it said that restart of operation is subject to government’s guarantee of uninterrupted gas supply by the Nigerian Gas Company even as it has invested more than $400m in the factory since they took over in 2006.
The company temporarily stopped production in 2014 after the Nigeria Gas Company allegedly breached its agreement with the company on supply of gas.
Managing Director of ALSCON Mr Dmitriy Zaviyalov told Correspondents at Ikot Abasi Thursday said that the company is committed to restarting production despite the volatile operating environment in Nigeria.
Zaviyalov said the company remained desirous of maintaining it’s operations in ALSCON because of the country’s huge market potentials adding that recent engagements with the Federal Government has yielded fruits even as operations would restart as soon as discussions on the supply of gas is concluded.
When asked how much the company has lost during the period it has remained dormant, the MD who spoke through an interpreter said,”I will not be able to call any figure now because i might be right or wrong, but i estimate that the company since it privatiation has put in about $400m and We need about $500m to restart the production In ALSCON.”
He said that ALSCON has never been a party to the Supreme court judgement which ruled in favour of BFIG on the 26th of January, 2024, adding that it has secured judgement from the London Court of Arbitration that ALSCON was properly privatized.
The Russian who spoke through an interpreter said “you should understand that ALSCON is not a party to these suites in question. The Bureau of Public Enterprise approached the supreme court taking the BFIG to court.
“BPE is the representative of the Nigeria government that holds a small stake in ALSCON. Equally, you should understand that in our agreement with the Nigeria government, we agreed that the last court of arbitration will be the London Court of Arbitration.
“After the ruling of the Supreme Court, we approached the London Court of Arbitration and the court ruled in our favour, so we have the ruling from the London Court that ALSCON was properly privatized.” He said.
Russian Aluminum, UC RUSAL, the third largest aluminum company in the world acquired majority shareholding in ALSCON in 2006
It commenced full scale production in 2008 after mordernisation and has produced over 50,000 tonnes of aluminum.
The company has 40 plants spread across 14 countries.
