The Nigerian government is in talks with Russian Aluminium giant Rusal for a possible restart of operations at ALSCON smelter in Ikot Abasi, Akwa Ibom state.
The smelter, which was suspended a decade ago due to financial losses and legal issues, could restart as the government aims to revive industrial operations and bolster economic prospects in the country.
Prior to its suspension in early 2013, ALSCON churned out 22,000 tonnes of aluminium in 2012, about 11% of its annual capacity.
However, unfavourable factors, including the unavailability of a dependable gas supply and persistently low aluminium prices, compelled Rusal to halt its operations.
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Last week, Vice President Kashim Shettima engaged in discussions with Rusal’s management during the Russia-Africa summit held in St Petersburg. His office released a statement affirming the Nigerian government’s commitment to revive production at ALSCON, highlighting the potential positive impact on the nation’s economy.
“The sooner we get this plant back to production, the better for everyone. We need to walk the talk; the Nigerian people deserve better,” Mr Shettima said.
Rusal, which produced a substantial 3.8 million tonnes of aluminium in 2022, confirmed the ongoing discussions with the Nigerian government but refrained from divulging further details about the negotiation.
Rusal holds an 85% stake in ALSCON, while the remaining ownership belongs to the Nigerian government.
– Why this matters
Reviving the smelter will create jobs, revive the local economy and boost the Nigerian government exports and revenue.
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