RusAl said it plans to completely modernize the smelter so 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 $300 million.
RusAl closed a deal to acquire a majority stake in Alscon (Aluminum Smelter Company of Nigeria) in February 2007, receiving a 77.5% share in a 193,000-ton 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.
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.
RusAl says the smelter will create 1,900 local jobs and that 90% of the employees will be Nigerian citizens. Additionally, 20,000 jobs will be created through infrastructure projects, resulting in higher living standards for Akwa Ibom state residents.
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.
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.
