The Minister of Economic Development and Trade Nematullo Hikmatullozoda reported that Tajikistan planned to increase production of primary aluminum by 40% this year.
“We plan to increase the volume of aluminum production to 179,000 tons this year,” the minister said.
“Of course, it will depend on prices and demand for aluminum. If demand for aluminum increases, it will be possible to increase aluminum production,” Hikmatullozoda noted.
According to him, the downward trend in aluminum production that has been observed in recent years has resulted from decline in demand for aluminum in Ukraine, Armenia, Kazakhstan and Uzbekistan that are among trading partner for Tajik aluminum.
Unstable world prices for primarily aluminum have also led to decrease in production of aluminum in Tajikistan, Hikmatullozoda noted.
“The price for one ton of primary aluminum fell from $1,654 in 2015 to $1,605 in 2016,” the minister added.
Hikmatullozoda noted that Tajikistan produced 129,300 tons of primary aluminum last year, down by 7.2% YoY.
The Tajik Aluminum Company (TALCO) initially planned to produce 158,000 of aluminum last year. But at the beginning of the second half of 2016, the company management noted that it would decrease production of primary aluminum.
TALCO noted in September last year that rapid fall in the international aluminum prices that began in July 2013 resulted in 80% of world’s aluminum producers operating without getting profit and most of them incurring losses. In connection with the considerable fall in the international aluminum prices the company’s crisis management has proposed to consider the possibility of reducing the aluminum production volumes for the purpose of minimizing financial losses.
The Tajik Aluminum Company (TALCO) is one of the ten largest aluminum smelters in the world and provides up to 70% of the country’s foreign currency earnings, consuming 40% of the country’s electrical power. TALCO is wholly owned by the Tajik government. Tajikistan does not mine alumina but imports the raw material through tolling arrangements.
Construction of the Tajik aluminum plant (TadAZ) began in 1972, and the first pouring of aluminum took place on March 31, 1975. On April 3, 2007 TadAZ was officially renamed TALCO – Tajik Aluminum Company. The Tajik aluminum smelter had the capacity to produce 517,000 metric tons per year. (News.tj/Ukrainian metal)