Rio Tinto explains reasons for its withdrawal from Alucam

On October 8, 2014, the firm Rio Tinto Alcan officially announced its decision to sell its assets in the capital of the aluminum company of Cameroon (Alucam).

Although having explained that this decision was taken because "the business plan of Alucam group " does not meet the "strategic priorities of Rio Tinto", there are many speculation around this decision.

Among them, the output of the network of associations of consumers of energy (Race), a grouping of NGOs, said in a press release dated October 12, 2014, that "this precipitated departure (of Rio Tinto) appears to be indirectly linked to the signing on 10 July 2014, of an agreement between the operator of French electricity EDF (electricity of France) and the Cameroonian Government, for the construction of the hydroelectric power station of Nachtigal in the central region".

On October 17, 2014, in the Cameroonian Government daily, Claudine Gagnon, Senior Advisor and Rio Tinto Alcan media relations, seems to set the record straight. "Alucam Group's future is increasingly conditioned to the development of a new business model focused on the local manufacture of products with high added value, rather than on the export of primary metal. This new vision does not fit in the objectives of Rio Tinto Alcan, which focuses on the production of primary metal ", she said.

Speaking on the construction of the Natchigal project, with a production of more than 400 MW capacity, and which would allow the biggest consumer of electric power of Cameroon that is Alucam to triple its production of aluminium (from 90,000 to 300,000 tonnes), Claudine Gagnon is unequivocal: "Rio Tinto Alcan remain within the project and will continue to contribute to its development."

This information was confirmed by Alain Malong, the DG of Alucam, "even if Rio Tinto leaves the Alucam group shareholding, it remains a partner and proposes to maintain the agreements for a period of one year, while offering the opportunity to the new purchaser to reconsider, according to its directions and choices".

Pending the transfer of the assets of Rio Tinto in December 2014, the Group Alucam, which, in addition to the aluminum production plant has also two subsidiaries (Socatral and Alubassa), respectively specialised in the manufacture of corrugated iron sheets and kitchen utensils; so far held by Rio Tinto Alcan and the Government of Cameroon at 46.67% each. The rest of the capital being shared between the Agence française de développement (5.6%) and staff (1.1%).