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Rusal Takes Nigerian government to London Court over ALSCON
Edited by : AL CIRCLE
2 min read
In an attempt to frustrate the Federal Government from handing over the Aluminium Smelter Company (ALSCON) at Ikot Abasi, Akwa Ibom State, to BanCorp Financial Group (BFIG) following the Supreme Court judgment, the current operator of the multi-billion dollar plant, Russia’s Rusal has taken the Nigerian government to court, in England.
Rusal said in a statement released Sunday that it had taken the Federal Government of Nigeria to the International Court of Arbitration in London over the mutual breach of agreement.
Rusal, in the statement signed by Ms Elena Morenko and Mr. Albert Dyabin, said its position was to resist any attempt by the Federal Government to implement the Supreme Court judgment that was in favour of American firm, BFIG in the bid for the nation’s premier alluminium plant.
According to the company, it was compelled to take the decision to “prohibit the Federal Government of Nigeria from executing the decision of the Supreme Court to its detriment and alternatively, granting damages in the event that, Rusal should suffer a loss to its ownership of the stake in ALSCON.”
Similarly, Rusal that claims to produce about nine per cent of global aluminium output has equally dragged BFIG before a Federal Court in California, United States requesting it to give Rusal evidence relating to their role in ALSCON auction and other related issues.
Rusal, which bought 85 per cent stake in ALSCON, insisted that the Supreme Court of Nigeria did not “state that the company should vacate the plant immediately.”
It said it was also considering the possibility of filing a suit against a media outfit in the country (not THISDAY) for reporting of the plans by the Federal Government to take over the plant and hand it over to BFIG.
The company debunked ‘false’ report speculated in the media that the number of production pots have reduced from 108 to 54 saying, ALSCON since its launch in 1997, had never operated at its full capacity estimated at 198,000 tonnes (432 pots) of aluminium per annual.
Rusal argued that not a single pot was functional when the company acquired the plant until the commencement of its modernisation programme in 2008.
It claimed that for the smelter to operate at 50 per cent capacity or higher, it would require the dredging of Imo River and uninterrupted gas supply.
Rusal said in a statement released Sunday that it had taken the Federal Government of Nigeria to the International Court of Arbitration in London over the mutual breach of agreement.
Rusal, in the statement signed by Ms Elena Morenko and Mr. Albert Dyabin, said its position was to resist any attempt by the Federal Government to implement the Supreme Court judgment that was in favour of American firm, BFIG in the bid for the nation’s premier alluminium plant.
According to the company, it was compelled to take the decision to “prohibit the Federal Government of Nigeria from executing the decision of the Supreme Court to its detriment and alternatively, granting damages in the event that, Rusal should suffer a loss to its ownership of the stake in ALSCON.”
Similarly, Rusal that claims to produce about nine per cent of global aluminium output has equally dragged BFIG before a Federal Court in California, United States requesting it to give Rusal evidence relating to their role in ALSCON auction and other related issues.
Rusal, which bought 85 per cent stake in ALSCON, insisted that the Supreme Court of Nigeria did not “state that the company should vacate the plant immediately.”
It said it was also considering the possibility of filing a suit against a media outfit in the country (not THISDAY) for reporting of the plans by the Federal Government to take over the plant and hand it over to BFIG.
The company debunked ‘false’ report speculated in the media that the number of production pots have reduced from 108 to 54 saying, ALSCON since its launch in 1997, had never operated at its full capacity estimated at 198,000 tonnes (432 pots) of aluminium per annual.
Rusal argued that not a single pot was functional when the company acquired the plant until the commencement of its modernisation programme in 2008.
It claimed that for the smelter to operate at 50 per cent capacity or higher, it would require the dredging of Imo River and uninterrupted gas supply.
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