DUSHANBE, August 2, 2016, Asia-Plus – Over the first six months of this year, Tajikistan has produced 73,101 tons of primary aluminum, which is 13.6 percent more than in the same period last year, Tajik Deputy Minister of Economic Development and Trade, Umed Davlatzod, announced at a news conference in Dushanbe on August 2.
According to him, Tajikistan is expected to produce 156,000 tons of primary aluminum this year, which is 16,400 tons more than last year.
The deputy minister noted that global demand for aluminum has declined that has led to decrease in aluminum prices.
“Prices for two main export items of Tajikistan – cotton fiber and aluminum – are volatile,” said Davlatzod. “Current international price for one ton of aluminum is 1,645 USD, while the weighted average price for one ton of aluminum during this year was 1,542 USD.”
In the first half of 2016, cotton fiber reportedly accounted for 12.5 percent of Tajikistan’s exports and primary aluminum accounted for 26 percent of the country’s exports.
Over the same six-month period, Tajikistan has exported 73,500 tons aluminum, which was 12,300 tons more than in the same period last year.
Compared to 2015 aluminum prices reportedly fell by 239.00 USD.
Meanwhile, EurasiaNet.org reported on July 28 that the Tajik Aluminum Company (TALCO) continues to lose money despite production at the aluminum smelter being on the increase.
The Ministry of Finance (MoF) reportedly links the losses to falling prices for the metal on the international market and the rise in cost for inputs.
According to EurasiaNet.org, the MoF said last week that at the end of the first quarter TALCO had outstanding debts of 2.5 billion somoni ($318 million) and that the company was itself owed 465 million somoni ($59 million).
The ministry and international advisors have recommended root-and-branch restructuring for the company and an overhaul of equipment.
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 to TALCO – Tajik Aluminum Company. The Tajik aluminum smelter had the capacity to produce 517,000 metric tons per year.
