08 OCTOBER 2012cospp.com
Energy Ministry to decide on power subsidy for Bogoslovsk Aluminum Plant ( Part II)
Edited by : AL CIRCLE
2 min read
The Russian Energy Ministry is now considering the possibility of effecting a reduction of the long-term electrical power tariff for Bogoslovsk Aluminum Plant (BAZ), Energy Minister Alexander Novak told the press in Yekaterinburg on Wednesday.
The issue will be settled on an individual basis, Novak said.
"I think that we will make a final determination on this issue in the near future," Novak said.
As reported, Russian Aluminum (Rusal) considers it impossible to get aluminum production at BAZ to break even only with modernization and without a reduction in the electricity tariff.
Per company calculations, the price for supplied electricity has to be comparable with that for the company's Siberian plants - not over $0.03 per kilowatt (less than one ruble).
As reported, Rusal has decided to slash its capacities by 275,000 tonnes of primary aluminum by 2018. By the end of this year, thanks to high electricity tariffs and low global metal prices, there are plans to draw down capacities for producing 150,000 tonnes of primary aluminum at four plants, including BAZ.
Rusal is prepared to supply new RA-400 electrolysis baths with total productivity of some 400,000 tonnes, which is 5-7 times more than exists at BAZ right now. Construction could take from four to five years following the approval of a feasibility study.
After Rusal voiced its plans to shut down electrolysis production at BAZ, the Sverdlovsk region created an extraordinary commission to identify the realities at the smelter and to look into the options for resolving the situation, aiming to retain personnel and develop production.
BAZ produces aluminum and alumina and also specializes in alumosilicic and aluminum-magnesium alloys, which are used in machine and aviation building, as well as in protecting objects from corrosion (tread alloys). BAZ utilizes bauxites from the Severouralskoye field.
(Continued from http://www.alcircle.com/NewsDetails.aspx?center=NC&recId=12745)
The issue will be settled on an individual basis, Novak said.
"I think that we will make a final determination on this issue in the near future," Novak said.
As reported, Russian Aluminum (Rusal) considers it impossible to get aluminum production at BAZ to break even only with modernization and without a reduction in the electricity tariff.
Per company calculations, the price for supplied electricity has to be comparable with that for the company's Siberian plants - not over $0.03 per kilowatt (less than one ruble).
As reported, Rusal has decided to slash its capacities by 275,000 tonnes of primary aluminum by 2018. By the end of this year, thanks to high electricity tariffs and low global metal prices, there are plans to draw down capacities for producing 150,000 tonnes of primary aluminum at four plants, including BAZ.
Rusal is prepared to supply new RA-400 electrolysis baths with total productivity of some 400,000 tonnes, which is 5-7 times more than exists at BAZ right now. Construction could take from four to five years following the approval of a feasibility study.
After Rusal voiced its plans to shut down electrolysis production at BAZ, the Sverdlovsk region created an extraordinary commission to identify the realities at the smelter and to look into the options for resolving the situation, aiming to retain personnel and develop production.
BAZ produces aluminum and alumina and also specializes in alumosilicic and aluminum-magnesium alloys, which are used in machine and aviation building, as well as in protecting objects from corrosion (tread alloys). BAZ utilizes bauxites from the Severouralskoye field.
(Continued from http://www.alcircle.com/NewsDetails.aspx?center=NC&recId=12745)
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