Rusal partners with Ghana for bauxite projects

Global aluminium company Rusal, based in Guinea, has signed a memorandum of understanding with Ghana's state-owned company GIADEC to develop bauxite extraction and processing in Ghana. This partnership is part of Rusal's broader strategy to expand its operations across Africa, where it already operates in Guinea and is exploring opportunities in Ethiopia.

Rusal's Nigerian venture and its challenges

Rusal previously acquired 85% of the shares in Nigeria's Aluminium Smelter Company (ALSCON) in 2007, with plans to invest USD 150 million over three years to modernize the plant. ALSCON, located in Akwa Ibom state, has a nominal production capacity of 193,000 tons of aluminium per year.

Legal disputes and operational setbacks

After resuming operations in 2008, ALSCON faced interruptions due to natural gas supply problems and a legal dispute with the American BFI Group over the plant's privatization. Rusal took the case to the London International Arbitration Court (LCIA) in 2012, and in 2014, the court ruled in Rusal's favor, confirming the validity of its acquisition. However, legal uncertainties remained unresolved.

Nigerian government efforts and new legal challenges

The Nigerian government, which holds the remaining 15% of ALSCON's shares, is working to connect the plant to the national electricity grid to restart operations. In October 2026, the Nigerian Economic and Financial Crimes Commission (EFCC) launched legal proceedings against ALSCON and its Russian director for alleged violations of financial reporting laws. The company denied the charges, and the trial was postponed to early 2027.

Rusal's ongoing involvement and uncertain future

Rusal continues to include ALSCON in its financial reports but does not disclose detailed economic data about the subsidiary. The plant was expected to create around 1,900 direct jobs and 20,000 indirect jobs, but currently only 150 people are employed there. Nearly twenty years after Rusal's initial involvement, the plant's role in Nigeria's economy and its significance to Rusal's African strategy remain unclear.

Rusal's future projects in Africa

In Ghana, Rusal plans to develop a bauxite mine with an annual output of 5 million tons and an alumina refinery capable of processing 1.2 million tons per year. In Ethiopia, the company announced in November 2025 its intention to build an aluminum smelter with a capacity of 500,000 tons annually, requiring an estimated investment of USD 1 billion. The success of these projects, along with Rusal's handling of ongoing issues in Nigeria, will shape the company's future in Africa.