ALSCON loses $1.4m monthly

The monthly loss of RUSAL ALSCON has reached $1.4million, it was learnt yesterday.

Speaking with reporters in Uyo, the Akwa Ibom State capital, the firm’s Director of Public Relations, Tatyana Smirnova, said the plant had suffered regular disruptions in gas supply since 2007.

He explained that a second gas pipeline would enable ALSCON to develop the plant and reduce its losses, adding that the plant has survived six gas outages, that required $60million to fix.

Smirnova noted that during its operations, the plant used only 11 per cent of its production capacity churning out 197,000 tons of aluminium yearly.

Her words: “The cost of production of aluminium in 2012 was $2,886 per ton, while average market price for aluminium in 2012, was about $2,000 per ton. The losses of ALSCON during production of one ton were $886, adding that the monthly losses of ALSCON for the review period stood at $1.4million.”

The Director stated that during the period of suspension of aluminium production, the main efforts of the management of the plant are aimed at solving the issue of provision of reliable gas supply at the plant.

She added that a speedy resolution by the Federal Government on the construction of gas pipeline from Esit Eket to Ikot Abasi is a condition for the survival and development of ALSCON.

“Apart from this, RUSAL applies all its best efforts to settle legal uncertainty around the plant. However, the situation with legal uncertainty in regard ownership of the plant requires solution on the part of the part of judicial agencies of Nigeria,” Smirnova said.

Smirnova explained that despite the difficult economic situation, the plant continues to provide social support for its employees. One of these is the electrification of the community.

She said since September 2007, the residents of Ikot Abasi have been enjoying 24- hour free electricity.

According to her, more than 30,000 indigenes are benefiting from the gesture.