Russian aluminium producer Rusal has disclosed ongoing discussions with the Nigerian government to potentially revive the Alscon smelter in Nigeria, which was suspended a decade ago due to financial losses. The smelter had produced 22,000 tonnes of aluminium in 2012, but operations were halted in early 2013 due to issues with gas supply and declining aluminium prices.
During the Russia-Africa summit in St. Petersburg, Nigeria’s Vice President, Kashim Shettima, met with Rusal’s management to explore the possibilities of restarting production at Alscon. The Vice President emphasized the importance of restoring the plant’s operations for the benefit of all and called on Russian companies to invest in strategic areas in Nigeria, the largest market in Africa.
Rusal currently holds an 85% ownership stake in Alscon, with the remaining share belonging to the Nigerian government. The company confirmed the negotiations with the Nigerian government on the resumption of Alscon plant operations but refrained from providing further details at this time.
Alscon, also known as the Aluminium Smelting Company of Nigeria, was incorporated as a joint venture between the Nigerian government and two technical partners in 1989 but began operations in 1997. It was privatized to UC Rusal in 2004 for around $250 million, but in 2012, the supreme court ruled that UC Rusal was not the true owner, leading to a transfer back to the true owner, BFIG. The revival of Alscon’s operations would mark a significant development in Nigeria’s aluminium industry and potentially boost the country’s economic growth.
