According to an instruction by Azerbaijani President Heydar Aliyev printed in the local press, metallurgical enterprises belonging to the Metallurgiya holding company are to be privatized.
The enterprises include the Azerboru Association, Sumgaittsvetmet, Glinozyom Production Association of Gandzha and the Zaglik alunite mines.
The State Property Committee will take charge of these businesses until they are incorporated. Shares in the companies will be offered at commercial and investment competitions to which foreign investors will be admitted.
Another part of the president’s instruction repeals a 1996 document, in which he approved a contract to allow Trans-World Metals to manage alumina-producer Glinozyom. That contract was dissolved earlier this year when Trans-World said it could not sell the sulphuric acid byproduct from alunite processing, which can not be stored for long periods.
Metallurgiya President Tofik Hasanov says that other foreign companies showing an interest in Glinozyom were considering upgrading the alunite processing in order to eliminate the sulphuric acid byproduct. To do so, however, would require substantial investment.
Hasanov says the Azerbaijani metals industry, which is working at just 10-15% of capacity, would have an increased chance of survival if foreign investors were allowed to own shares.
— With files from Interfax News Agency
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