UC RUSAL, the management of the Aluminium Smelter Company of Nigeria (ALSCON), has announced plans to inject $500 million to revive the smelter company in Ikot Abasi Local Government Area of Akwa Ibom State.
This was disclosed by ALSCON Chairman, Alexey Arnautov, during a visit with the company’s management to President Bola Tinubu at the State House in Abuja on Friday, according to a statement released by Ajuri Ngelale, Special Adviser to the President on Media and Publicity.
Arnautov emphasized that the $500 million investment within a specific timeframe will significantly enhance the company’s performance.
“In his remarks, the Chairman of ALSCON assured the President of the preparedness of the management to turn around the fortunes of the company within a given period by injecting $500 million.
“Arnautov said the management was aware of the centrality of aluminium in modern development, particularly for Nigeria, and would continue to support the growth of the country,” a portion of the statement read.
President Bola Tinubu expressed the government’s strong interest in reviving the smelter company in Ikot Abasi, Akwa Ibom State, highlighting its importance for the nation’s development.
“It is good to have you at this meeting. Smelter is necessary for the development of the country,’’ he stated.
The President also stressed the need for a clear vision and detailed plans in the steel and energy sectors, insisting that “there must be timelines” to ensure progress.
He further directed the Minister of Steel Development, Prince Shuaibu Audu, and the Special Adviser to the President on Energy, Ms. Olu Verheijen, to review and provide an update on the status of ALSCON.
What you should know
ALSCON was launched in 1997 but ceased operations in 2000. In 2007, United Company RUSAL (UC RUSAL), a Russian company, acquired an 85% stake, with the remaining shares owned by the Nigerian government.
RUSAL modernized the facility, which has an annual capacity of 193,000 tonnes of aluminium, but operations were suspended in March 2013 due to an unreliable gas supply, making production unviable.
Despite various government efforts to revive ALSCON, progress has been slow. In July 2023, Vice President Kashim Shettima met with UC RUSAL management and other stakeholders during the Russia-Africa Summit to discuss reactivating the plant.
Earlier this year, ALSCON’s Managing Director, Dmitriy Zaviyalov, stated that $500 million is needed to restart production, with funds allocated for reviving dormant equipment and acquiring power-generating sets.
