The Suspension of Production at Alscon in March to High Cost of Aluminum

The Aluminum Smelter Company of Nigeria (ALSCON) in Ikot Abasi Local Government Area of Akwa Ibom says it is losing US$6.1 million monthly due to high cost of production. Mrs Tatyana Smirnova, its Director of Public/Government Relation said: "Each tonne of aluminum produced at ALSCON results in a loss of US$886 which leads to monthly loss of US$1.6 million by the plant. At the current price of below US$1800/ton, around 40% of aluminum production is unprofitable," she continued. Smirnova attributed the suspension of production at ALSCON in March to high cost of aluminum. The company had a gas-fired power plant of its own with capacity of 540 megawatts. The power plant could satisfy the electricity needs of the smelter and also supply excess production to the national grid, however there is no likelihood that ALSCON will resume aluminum production until the power supply issue is resolved.