NewsALSCON Requires $500M To Restart Work On Aluminum Smelter Plant In Ikot...

ALSCON Requires $500M To Restart Work On Aluminum Smelter Plant In Ikot Abasi – MD

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March 01, (THEWILL) – The Managing Director of Aluminum Smelters Company of Nigeria (ALSCON), located in Ikot Abasi Local Government Area, Akwa Ibom State, Mr Dmitriy Zaviyalov, has said that the company requires not less than $500 million to resume production in the moribund plant.

Zaviyalov stated this yesterday, during a courtesy visit by the new Executives of the Correspondents’ Chapel of the Nigeria Union of Journalists (NUJ), Akwa Ibom State chapter at the company’s premises in Ikot Abasi LGA, saying that the company is committed to restarting production as soon as possible.

Zaviyalov, who spoke through an interpreter however lamented that the company has lost about $400 million during the period it has remained dormant.

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According to him, “I will not be able to call any figure now because I might be right or wrong, but I estimate that the company since its privatisation has put in about $400 million and We need about $500 million to restart the production In ALSCON.”

He stated that the restart of operation in the plant is subject to the government’s guarantee of uninterrupted gas supply at a price acceptable for the project economics and dependent on ensuring the safety and stability of the operational process by the parties involved. It also stated that it has put in well over $400 million since it was privatised.

He explained that the money put in is a result of the company’s resolve to retain over 108 workers, even though not generating income and continue her Corporate Social Responsibilities such as giving scholarships to someone students from the host community.

THEWILL reports that the company temporarily packed up in 2013, following inadequate gas supply to the company by the Nigeria Gas Company which reportedly breached its agreement with the company.

The Managing Director used the occasion to explain that, ALSCON was never a party to the Supreme Court judgement which ruled in favour of BFIG Group on January 26, 2024, concerning the ownership of the Aluminum Smelter Plant, adding that it has secured judgement from the London Court of Arbitration that ALSCON was properly privatised.

“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 Nigerian government that holds a small stake in ALSCON. Equally, you should understand that in our agreement with the Nigerian 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 privatised”, he explained.

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