Nigerian smelter exports first aluminium in 9 years

LAGOS, May 20 (Reuters) - Nigeria's sole aluminium smelter ALSCON has made its first shipment after the plant, which had been idle since 1999, restarted in February, its operators said on Tuesday.

Russia's United Company RUSAL, the world's largest aluminium and alumina producer, said the first batch of 72 tonnes of aluminium ingots was on its way to Rotterdam in Holland.

The Aluminium Smelting Company of Nigeria (ALSCON) in southeast Akwa Ibom state had a capacity of 193,000 tonnes a year when it was built by the government at a cost of $2.5 billion in 1997. But it was poorly managed and produced just 40,000 tonnes of metal before closing in 1999.

"The beginning of export shipment marks a significant milestone for ALSCON and represents new opportunities for all stakeholders," the firm's managing director Andrey Partyanskiy said in a statement.

He said ALSCON metal will also supply to the domestic market to boost local industry.

RUSAL, which bought control of the plant for $250 million last year after a two-year privatisation process, is expected to transform ALSCON into a major producer in Africa, satisfying a significant share of local demand for aluminium.

The world's top aluminium smelter said it has earmarked $300 million to completely modernise the smelter by 2010, and dredge the Imo river, which is key to the import of raw materials and export of finished aluminium.

The Nigerian government retained a 15 percent stake in the plant, while Germany's Ferrostaal AG (MANG.DE: Quote, Profile, Research) has 7.5 percent. (Reporting by Tume Ahemba; Editing by Marguerita Choy)