Business Trip of Minister A. R. Belousov to Sverdlovsk Oblast
"It is one of several cases when we succeeded to come to an agreement serving the interests of business and people", said Minister A .R. Belousov following the results of the agreement concluded by and between Sverdlovsk Oblast, UC RUSAL, BAZ-SUAL Branch Administration of OJSC “SUAL” and BAZ-SUAL MMWU (Miners’& Metallurgical Workers’ Union), Branch Trade Union Committee of OJSC “SUAL”.
“I am here with the specific aim: to solve the problem concerning working plant preservation”, stated A. R. Belousov, the Minister of Economic Development of the Russian Federation, visiting Bogoslovsk Aluminium Smelter in Krasnoturyinsk of Sverdlovsk Oblast.
The business trip to Sverdlovsk Oblast made by the Minister A. R. Belousov resulted in signature of the agreement aimed at settlement of the conflict between UC RUSAL and Trade Union Committee of Bogoslovsk Aluminium Smelter.
The agreement was signed by E. V. Kuyvashev, the Governor of Sverdlovsk Oblast, O. V. Deripaska, Director General of UC RUSAL, V. V. Kazachkov, Director General of BAZ-SUAL Branch, and N. A. Prokofiev, Chairman of Primary Trade Union Organization of BAZ-SUAL Branch, in the presence of A. R. Belousov, the Minister of Economic Development of the Russian Federation, on September 16, 2012 in Krasnoturyinsk.
“It is one of several cases when we succeeded to come to an agreement serving the interests of business and people. Aluminium industry is strategic for the country. However, one solution may bring about another one. At present large-scale projects on commissioning of Taishet and Boguchansk Aluminium Smelters are being implemented in Russia with the assistance of VEB (Bank for Development and Foreign Economic Activities). For this purpose old facilities should be decommissioned. It is necessary to consider all matters as a whole. The government must take part in social and general economic decisions making”, commented A. R. Belousov on the agreement conclusion.
Agreement priority targets are the following:
- preservation and further increase of jobs in Sverdlovsk Oblast;
- expansion of output and raw, primary aluminium, semiproducts and end-use products consumption in Sverdlovsk Oblast for purposes of development of mechanic engineering, aerospace industry, railway transport, construction, packaging materials production and other industries;
- creation of long-term conditions for aluminum industry development in Sverdlovsk Oblast using vertical production and power supply integration methods, as well as rate regulation of electric-power industry and transport infrastructure.
In execution of the Agreement the Parties shall assume the following obligations.
- Taking into account the opinions of A. R. Belousov, the Minister of Economic Development of the Russian Federation and Supervisory Director of the State Corporation Bank for Development and Foreign Economic Activities (Vnesheconombank), on feasibility of the project on improvement in current foundry production to increase output of high value added products (powders, alloys and products made thereof, semiproducts, including those used for foil production, high purity aluminium) UC RUSAL shall prepare and submit a project and investment appropriation request for the said projects financing in the amount of up to 55 million US dollars including about 25 million US dollars for improvement of foundry production in BAZ-SUAL Branch and about 30 million US dollars for improvement of production in UAZ-SUAL Branch to Vnesheconombank. Production improvement will be efficient if credit resources amount do not exceed 7% in rubles per annum.
- To create new jobs for aluminium complex operation in Sverdlovsk Oblast UC RUSAL and the Government of Sverdlovsk Oblast will make every effort to implement the following measures within the limits of their authorities and with the participation of Vnesheconombank:
Integration of heat, steam and electric power production facilities into aluminium and refinery complex on the basis of Bogoslovsk and Novobogoslovsk HPPs (Heating and Power Plant) in Krasnoturyinsk and Krasnogorsk HPP in Kamensk-Uralsky by repurchasing them;
Provision of rate regulation in terms of economically feasible rates for bauxite and alumina railway transportation to the plants in Sverdlovsk Oblast;
Opportunity analysis of cement production facilities expansion in Sverdlovsk Oblast for optimal utilization of energy resources and maximum use of refinery complex wastes;
Development and approval of silicon production improvement project to be implemented in Kamensk-Uralsky to start solar and metallurgical silicon production;
Conclusion of a long-term agreement on BAZ-SUAL Branch production galvanic protection with concerned companies and with the participation of the Government.
Volume of aluminium production at potline VI (5—6 potrooms) of BAZ-SUAL Branch remains at the same level (including electrolyte pots capital repair) with the decrease of electric rate down to 3 US cents (in exceptional cases) and with regard to electrolyte pots production volume in 2013—2014. Improvement projects mentioned in Clause 1 hereof are aimed at provision of continuation of BAZ-SUAL Branch potline VI operation, among other things. Production facilities of unit I (2—4 potrooms) will be decommissioned step by step based on electrolyte pots technical condition (pre-emergency disconnection shall be carried out in accordance with low grade electrolyte pots disconnection procedure).
The company guarantees that it will not reduce staff of BAZ-SUAL Branch. Staff schedule of alumina production shall be changed to create additional jobs for employees engaged in electrolysis production and employees working in subdivisions that provide such production including OAO BAZ-SUAL-Remont employees. All matters related to assistance of employees engaged in electrolysis production will be resolved individually according to Russian law.
Government of Sverdlovsk Oblast and municipal unit in Krasnoturyinsk will apply to Vnesheconombank (Working Group on Single-Industry Cities Modernization) to review and support a complex investment plan for single-industry cities development.
“Administration of Sverdlovsk Oblast and Krasnoturyinsk shall submit a specific offer for alternative jobs creation in Krasnoturyinsk to the Working Group on Single-Industry Cities Modernization within 5 working days”, confirmed I. V. Makieva, the Vice-Chairman of the Board of Vnesheconombank.