Tuesday, June 19, 2018

Sverdlovsk Region Government urges continuation of electrolysis production at BAZ

The Sverdlovsk Region Government will be keeping the electrolysis facilities at Bogoslovsky Smelter, according to a statement from Head of Government Denis Pasler.

"Since the first day of negotiations and up to now, Sverdlovsk Region Government has insisted on keeping the electrolysis production at BAZ. In case the liquidation cannot be avoided, RUSAL management has been asked to find jobs for the aluminum production facilities personnel, and the company promised to do so. RUSAL is, after all, a large holding that works in many other directions besides aluminum. We suggest considering the possibility of developing RUSAL's other facilities in Krasnoturinsk, like the building enterprises, for example," Pasler said, Ural Business Consulting reports.

According to Pasler, the cost of electricity at Bogoslovsky Smelter was more expensive than at the company's other Russian-based production sites, which is why the company intended to close down its electrolysis production.

"This is the case, even though Sverdlovsk Region Government decided not to charge BAZ anything for the local distribution of power, which reduced the cost of one kilowatt-hour from 2.46 RUR to 1.66 RUR. All the other adjustments are related to the charges imposed by the federal authorities," Pasler added, Ural Business Consulting reports. 'We expect RUSAL to announce a tender for the construction of a boiler that would produce steam for alumina production within one month's time; this will let them stop using the old power station."

The company and the government are expected to continue with negotiations, as a solutions to the electrolysis production problem at BAX has not yet been found.