September 07, 2008

UC RusAl launches Alscon smelter in Nigeria

RIA Novosti reported that UC RusAl, the world's largest aluminum and alumina producer has launched the Alscon smelter in Nigeria.

Alscon, based in Nigeria's Akwa Ibom State, produced its first metal in 1997, but was brought to a standstill in 2000 by high production costs, inadequate gas supply, and a lack of working capital. The smelter includes two potlines, an anode rodding shop, a cast house area and various infrastructure facilities including a port on the Imo River and a power generating gas station.

To date, the first start-up section of the cast house has been launched; dry scrubbers installed; two gas-turbine units have been refurbished; the anode rodding shop has been completed, and a system of alumina transportation has been organized.

RusAl said it plans to completely modernize the smelter so that it can reach its full capacity of 197,000 tonnes per annum in 2010. Investment in the plant's modernization, including dredging of the Imo River, will total approximately USD 300 million.

The report said RusAl closed a deal to acquire a majority stake in Alscon in February 2007 receiving a 77.5% share in a 193,000 tonnes smelter as well as a port on the Imo River and a power station. Germany's Ferrostaal AG and the government of Nigeria remain minority shareholders with 7.5% and 15% respectively.

UC RusAl, controlled by Oleg Deripaska's Basic Element, became the world's largest aluminum producer after a March merger between RusAl, rival Sual and Swiss Glencore's alumina assets.