In a candid disclosure shedding light on the hurdles confronting the Aluminium Smelter Company of Nigeria (ALSCON), its managing director, Mr. Dmitriy Zaviyalov, has unveiled that the company needs in excess of $500 million to recommence production.
Speaking at an interactive session with journalists held at ALSCON’s premises in Ikot Abasi, Akwa Ibom, Zaviyalov elucidated on the financial and operational challenges confronting the company.
Highlighting the critical need for government support, Zaviyalov underscored the necessity of ensuring uninterrupted gas supply at a feasible price point, an essential requirement for ALSCON to resume operations effectively.
The company had halted production in 2013 due to insufficient gas supply from the Nigeria Gas Company Limited (NGC), despite commencing operations back in 2008.
Zaviyalov lamented, “The company temporarily packed up in 2013 following inadequate gas supply by the Nigeria Gas Company (NGC), which reportedly breached its agreement with the company.”
Discussing the financial ramifications of the production hiatus, Zaviyalov refrained from offering precise figures but estimated ALSCON’s investments to be approximately $400 million since privatisation.
He emphasised the necessity of an additional $500 million to jumpstart production effectively.
“We have retained 108 Nigerian workers to run skeletal services at ALSCON despite the stoppage of production. When production resumes at ALSCON, it will add value to the Nigerian economy as it will create more job opportunities,” Zaviyalov highlighted.
Addressing legal concerns surrounding ALSCON, Zaviyalov clarified the company’s position on recent court rulings. He underscored ALSCON’s non-involvement in the supreme court’s judgment in favour of BFIGroup on January 26, reaffirming the company’s successful judgment from the London Court of Arbitration.
“You should understand that ALSCON is not a party to these suits in question. The Bureau of Public Enterprise (BPE) approached the Supreme Court, taking the BFIGroup to Court,” Zaviyalov clarified.
Assuring stakeholders of progress, Zaviyalov disclosed ongoing discussions with NGC to restore gas supply, with Vice President Kashim Shetima providing assurances regarding the resolution of the issue.
“The gas supply will soon return to ALSCON. There is progress toward getting gas to the company. We have met Vice President Kashim Shetima, and he has given us that assurance,” Zaviyalov stated.
Despite the challenges, Zaviyalov reiterated ALSCON’s commitment to its workforce and the host community, highlighting its pivotal role in contributing to the local economy upon resuming operations.
Between Depleting Workforce And Declining Productivity