ALSCON: London Arbitral Tribunal Rules in Favour of UC Rusal

A Russian aluminium giant, UC Rusal, has secured in its favour a ruling by a three-member LCIA arbitral tribunal in London against the Federal Government of Nigeria, the Bureau of Public Enterprises (BPE), the Ministry of Finance and the National Council for Privatisation concerning the ownership of Aluminium Smelter Company of Nigeria (ALSCON).

A statement issued by UC Rusal Thursdaym a copy of whicj was sent to THISDAY, explained that the award is the culmination of a case brought by the company in August 2012 against the respondents to confirm the legal status of certain shares in the ALSCON that were purchased by the company from the respondents in 2006.
In the consent award dated October 15, the tribunal confirmed the parties’ amicable agreement (SPA) to the effect that the share purchase agreement between the company and the respondents on February 3, 2006 (“SPA”) is valid, binding, and in full force and effect in accordance with its terms.

It submitted that under the SPA, the company acquired full legal and beneficial title to the relevant ALSCON shares free and clear of all encumbrances.

It consequently stated that the respondents’ counterclaims are dismissed.
Commenting on the tribunal’s award, UC RUSAL’s Director for new projects, Alexey Arnautov, said: “We are pleased that the LCIA tribunal ruled in our favour in accordance with the agreement of the parties.

“Since the acquisition of ALSCON shares, RUSAL has made great efforts to turn the smelter, which had previously sat idle for 10 years, into a modern, technologically-advanced manufacturing enterprise.

“Although smelting operations are currently suspended as a result of our output reduction programme, we are making every effort to ensure that ALSCON will be ready to recommence production once the aluminium market improves,” he stressed.

According to him, the smelter will continue to supply power to neighbouring villages and provide employment for the local population.

He said the plant has significant potential not only in terms of aluminium production, but also in power generation before smelting operations resume.
 

Culled from thisdaylive