Sverdlovsk Region Government Insists on Keeping Electrolysis Facilities at BAZ

28 August 2012 (09:15)

Sverdlovsk Region Government is going to insist on keeping the electrolysis facilities at Bogoslovsky Smelter (BAZ), Head of Government Denis Pasler announced today.

‘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.

Head of Government explained that RUSAL BOD’s intention to close down the electrolysis production at Bogoslovsky Smelter mainly has to do with the fact that electric power still costs much more in Serov-Bogoslovsky area than on the company’s other Russia-based production sites.

‘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,’ he added.

‘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,’ Pasler noted.

The electrolysis production problem at BAZ has not been solved yet. The parties involved will keep negotiating on the federal level.

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