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Nigerian Senate panel wants sale of aluminium smelter to Rusal revoked
Edited by : AL CIRCLE
1 min read
The Nigerian Senate's committee on privatization has called for the sale of the government's stake in the Aluminum Smelter Company of Nigeria (ALSCON) to Russia's Rusal to be revoked, according to the committee's report published Wednesday.
The report was the outcome of a wider investigation begun last September of the privatization of government-owned companies by the state privatization agency, the Bureau for Public Enterprises, from 1999 to date.
"The National Council on Privatization should rescind the sale of ALSCON...and re-advertise [the smelter] for sale," the report said.
The panel investigated the sale of the government's 77.5% stake in the 193,000 mt/year smelter, built at a cost of $3.2 billion but sold to Rusal for $250 million. The committee was told that Rusal only paid $130 million of its total bid.
But the plant in southern Akwa Ibom state never operated up to average capacity and was shut down due to high production costs, inadequate gas supply and the lack of working capital.
The Nigerian government retains a 15% stake in the plant while Germany's Ferrostaal AG holds the remaining 7.5%.
The report was the outcome of a wider investigation begun last September of the privatization of government-owned companies by the state privatization agency, the Bureau for Public Enterprises, from 1999 to date.
"The National Council on Privatization should rescind the sale of ALSCON...and re-advertise [the smelter] for sale," the report said.
The panel investigated the sale of the government's 77.5% stake in the 193,000 mt/year smelter, built at a cost of $3.2 billion but sold to Rusal for $250 million. The committee was told that Rusal only paid $130 million of its total bid.
But the plant in southern Akwa Ibom state never operated up to average capacity and was shut down due to high production costs, inadequate gas supply and the lack of working capital.
The Nigerian government retains a 15% stake in the plant while Germany's Ferrostaal AG holds the remaining 7.5%.
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