Akpan Umoh, Uyo
The Management of Aluminium Smelters Company of Nigeria (ALSCON) has said that the Company will soon restart production to revive the industry and contribute to the growth of the Nigerian economy 10 years after shutting down production due to inadequate gas supply.
The Managing Director of ALSCON, Mr Dmitriy Zaviyalov, disclosed this during interaction with newsmen at the company’s premises in Ikot Abasi, Akwa Ibom State on Thursday.
Zaviyalov, however, added that over $500 million is required to restart production in the moribund Industry as it would need to resuscitate most of the equipment which had been obsolete since they stopped production in 2013.
He said that the company which commenced operations in 2008 stopped production in 2013 due to a lack of gas supply from Nigeria Gas Company Ltd. (NGC).
The managing director also disclosed that the UC Rusal has put in well over $400 million since it was privatised.
“The Company temporarily packed up in 2013, following inadequate gas supply to the company by the Nigeria Gas Company (NGC) which reportedly breached its agreement with the company,” he said.
Zaviyalov, who could not quantify how much the company lost during this period of stoppage, noted that the company had put in about $400 million and would require $500 million to restart production.
“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 said.
The managing director said that ALSCON has never been a party to the Supreme Court judgement which ruled in favour of BFIGroup on January 26, stressing that it had secured judgement from the London Court of Arbitration that ALSCON was properly privatized.
“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 BFIGroup to Court.
“BPE is the representative of the Nigerian government that holds small stakes 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.”
Zaviyalov said that ALSCON was in top discussion with NGE to ensure that they commence the supply of gas for the company to start production.
“The gas supply will soon return to ALSCON. There is progress to get gas to the company as we met Vice President Kashim Shetima and has given us assurance for gas supply,” he said.
The MD added that the company had good Corporate Social Responsibility with the host community as it was still keeping 108 personnel who are Nigerians to run skeletal services despite no production.
The managing director added that the commencement of production would add value to the Nigerian economy and create jobs for the teeming youth.