The Government of Tajikistan has adopted a regulation on the plan of actions to enhance the financial and economic situation of the State Unitary Enterprise (SUE) Tajik Aluminum Company (TALCO) designed for 2016-2018.
One of the plan clauses, in particular, concerns taking effective measures regarding signing of the trilateral transit trade agreement between the governments of Tajikistan, Afghanistan and Pakistan for the purpose of using the Pakistani seaport of Karachi.
Besides, the plan provides for helping TALCO get preferential loans under a state guarantee for purchase of raw materials.
Under this document, relevant ministries are ordered to work out a number of proposals on providing tax ease to TALCO.
The document also provides for reviewing cost of transportation by Tajik Railways of cargo for TALCO.
TALCO has faced serious financial and economic problems in recent years.
Aluminum production declined in Tajikistan from 420,000 tons in 2007 to 125,000 tons in 2014.
Tajikistan reportedly increased production of primary aluminum to a certain extent last year.
In a report released at a news conference in Dushanbe, Tajik Ministry of Industry and New Technologies Shavkat Bobozoda noted on January 28 that Tajikistan produced 139,000 tons of primary aluminum last year, which was 14,000 tons more compared to 2014.
Tajikistan also increased aluminum exports last year. In 2015, Tajikistan reportedly exported 130,900 tons of primary aluminum, which was 5,900 tons more than in 2014.
Over the first six months of this year, Tajikistan has produced more than 73,000 tons of primary aluminum, which was 14 percent more than in the same period last year.
Over the same six-month period, Tajikistan has exported about 74,000 tons of primary aluminum, which was 20 percent more than in the same period last year.
In November last year, the government granted the company licenses to develop two gold deposits in the northern Sughd province, Konchoch and Chulobi. Usage rights over the deposits will extend to 25 years.
This year, the major trading partners to Tajikistan’s primary have been Turkey (more than 70.5 percent or more than 52,300 tons), Taiwan (more than 16,500 tons), the Virgin Islands (288.2 tons), Uzbekistan (133 tons), and Pakistan (about 30 tons).
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.
