Ruschi Aluminium eyes Dobresti Mine

Mineral West Association, owner of the Dobresti bauxite mine, might close a deal with Ruschi Aluminium, the giant controlling more than 75% of Russia’s aluminium production. The Russian company took over the Oradea-based alumina plant, the only maker of tubular alumina in Europe and the second in the world, through Cemtrade Company in 1999.

The Russian company took over the Oradea-based plant at a time when the Russian aluminium industry was facing a severe alumina shortage. The Russian aluminium giants have found themselves having to import alumina from their European competitors over the past few years.

Ruschi Aluminium is now carefully considering BBG Alum Tulcea, bauxite maker held by Balli Trade Company, and is also monitoring the latest developments at Alro and Alprom.

“We are due to receive an answer from the Russians about signing a deal these days. In case it happens, we will be talking about a new impetus for the activity of the mine,” Tanase Pele, chairman of the Mineral West association, said.

The management of the mine promised to cover 25% of the bauxite amount needed by the Oradea-based alumina plant and a Russian specialist team has already visited the mine to assess the production.

The raw material is to be supplied at $28 per tonne, given that the plant in Oradea is currently importing bauxite from Austria at a price of about $40 per tonne.

Mineral West Association, comprised of 22 members, all of them former employees of Bauxita MIN Company, has been operating the Dobresti Mine since July 2000.

The association won the tender for the concession of the deposit, took over the assets of the former mining company and got the exploitation licence.

The current bauxite amount mined at Dobresti reaches 1,500 tonnes a month (out of the total capacity of 12,000 tonnes) and yearly turnover amounts to some 25bn lei.

The company has 210 employees, 90 of which are security guards. “Ever since we took over, we have kept 90 security guards to avoid thefts and we have 20 people actually working in the exploitation of the mine,” Pele said.

“If we sign the contract, we will hire 700 more people. If not, we will have to lay off the security guards, as well as other employees and downsize the company depending on the amount of bauxite sold,” he added.

The clients of the mine include Lafarge Medgidia, Siderurgica Hunedoara and Fabrica de Osii si Burghie from Bals.

Furthermore, part of the mine’s revenues come from Repcon Oradea, the largest land improvement and industrial construction company in the west of the country, which rented trucks, excavators and bulldozers from the mine.