The Guinean government has asked UC RusAl...
The government of the West African country has said RusAl must use funds from its initial public offering held in Hong Kong this week, which raised $2.24 billion, to finally settle the situation around the Friguia bauxite and alumina complex, which Guinea claims was illegally acquired by RusAl.
The Guinean government earlier wrote a letter to the Hong Kong stock exchange, warning subscribers to RusAl"s share offering that it had claims worth $860 million on RusAl that could affect the stock value during the IPO.
RusAl, the world"s biggest aluminum producer, is fighting attempts by the Guinean junta that seized power in the West African country last year to renationalize the Friguia alumina refinery, which RusAl bought from Guinea in 2006 for $19 million.
The Guinean junta has valued the asset at $257 million and accused RusAl of failure to pay a large sum of taxes and royalty, which has allegedly brought up the company"s debt to $860 million.