The management of Aluminum Smelters Company of Nigeria (ALSCON), located in Ikot Abasi Local Government Area of Akwa Ibom State, has said over $500m has been earmarked to resume production at the factory in Akwa Ibom state.
It also stated that the resumption of operation will depend on the government’s guarantee of uninterrupted gas supply at an acceptable price to guarantee the safety and stability of the operational process which will involve all parties.
The management of the moribund company explained that it has put in well over $400m since the firm was privatised in 2006.
It further recalled that the company temporarily packed up in 2013, as a result of inadequate gas supply to the plant by the Nigeria Gas Company which reportedly breached its agreement.
Speaking while fielding questions from newsmen after a media interaction held at the company’s premises in Ikot Abasi LGA, on Thursday, the Managing Director of ALSCON, Mr Dmitriy Zaviyalov said despite all odds, the company is committed to commencing production soon.
On how much the company has lost during the period of dormancy, Zaviyalov 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 its privatization has put in about $400m and we need about $500m to restart the production In ALSCON”.
Zaviyalov said that ALSCON was not a party to the Supreme Court judgement which ruled in favour of the Nigerian /American consortium -BFIG on the 26th of January, 2024, adding that it has secured judgement from the London Court of Arbitration that ALSCON was properly privatized through Bureau of Public Enterprise (BPE)
The Managing Director who spoke through an interpreter said ” You should understand that ALSCON is not a party to these suits 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 privatized ”
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It therefore urged stakeholders including host communities to remain calm as the plant will soon commence its operations in Akwa Ibom state.
Zaviyalov disclosed that despite the period of inactivity in ALSCON, the company still maintained its Corporate Social Responsibility (CSR) with the host communities and sustained the staff strength of 108 Nigerian personnel in the facility in Akwa Ibom state.
” We have trained people from our host communities in Russia and have awarded scholarships to indigenes. ”
While explaining the epileptic supply of gas by Nigeria Gas Company ( NGC) to the plant, the Managing Director said it was the only challenge that interrupted their operations.
” I liken ALSCON to an electric pot that is not connected to electricity but immediately power is connected, it will cook the content. ALSCON will certainly cook the aluminium content in her pot immediately after there is gas supply,” he said.
