China deal could double Tajikistan's aluminium output

Subject

Prospects for Tajikistan's aluminium industry.

Significance

The Tajik Aluminium Company (TALCO) is hoping a Chinese pledge of investment in its ageing production facilities will reverse a downward trend in production. The existing smelting plant is the country's most important industrial concern but generates little apparent profit as key transactions take place offshore. The plant's heavy power consumption has prompted construction of costly hydroelectric dams.

Impacts

• The Chinese-funded new plant will increase pressure to finish the Roghun dam to ensure adequate power supply.
• Improved ties with Uzbekistan should remove one obstacle to the Roghun project.
• Higher production will increase pollution concerns around Tursunzoda and in nearby parts of Uzbekistan.
• TALCO has long hoped to find bauxite (the source of raw alumina) in Tajikistan but the only known deposits would be costly to exploit.