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 Nairametrics.
Arnautov stressed that the company’s performance will be much improved by the $500 million investment made within a set timeframe.
“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,” the statement partly read.
President Bola Tinubu emphasized the smelting company’s critical role in the growth of the country and reiterated the government’s great desire to see it revived in Ikot Abasi, Akwa Ibom State.
“It is good to have you at this meeting. The Smelter is necessary for the development of the country,’’ he stated.
In addition, the President stressed that in order to guarantee success, “there must be timelines” and that the steel and energy industries have defined goals and well-thought-out plans.
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.
ALSCON was set up in 1997, only to come to an abrupt end in 2000. A Russian corporation called United Corporation RUSAL (UC RUSAL) purchased 85% of the shares in 2007; the Nigerian government held the remaining stakes.
The plant was renovated by RUSAL with an annual capacity of 193,000 tons of aluminum. However, because of an unstable gas supply, which rendered production unprofitable, activities ceased in March 2013.
The government has made several attempts, but the revival of ALSCON has not been successful. Vice President Kashim Shettima discussed reactivating the plant with UC RUSAL management and other stakeholders during the Russia-Africa Summit in July 2023.
