Russia Metals and Mining, Tajikistan Metals and Mining
Is "Talco" ready to "roll"?
The largest aluminum plant in Tajikistan "Talco" has signed an agreement with Glencore International and Talco Management Limited on the commissioning of 200 aluminum smelting furnaces.
The State Company "Talco", Glencore International and Talco Management Limited have agreed to resume work on 200 aluminum smelting furnaces. A source in "Talco" told Radio Ozodi that the agreement had been signed on October 15, 2014.
The Swiss company Glencore International will begin work in the winter, and by the summer of 2015 the furnace will be launched.
Today, Tajik unitary enterprise Talco is going through difficult times in its history. According to the Ministry of Economic Development and Trade of Tajikistan, in the first six months of 2014, the company produced 36 thousand tons of primary aluminium. In the same period in 2013, about 60 thousand tons was produced. Thus, the reduction in the production made up was almost 40%. This is connected with the fall in world prices for aluminium.
This production decline may be not noticeable in developed countries, which economy is capable of coping with external negative factors. However, the primary aluminium production plays a significant role in the structure of GDP in Tajikistan. Additionally, more than 30 companies work in related industries that depend on Talco. Talco creates twelve thousand jobs. Tajikistan has not so many of such companies, and even a short-term decline in the production, not to mention the production suspension, promises a big loss to the state's economy.
The Swiss Arbitration Court ruled that the Tajik aluminium plant (Talko) is to pay out $275 million to Hamer Investing Ltd, UC RusAl’s subsidiary, for the incurred loses, inclusive all legal costs, is said in a statement of UC RusAl.
The payments include $112.7 million (the cost of alumina and other raw materials, supplied by Hamer Investing to Talko on partnership basis in 2003), loss of opportunity (shortfall in profits) at $147 million and legal costs at about $14.56 million.