An aluminum plant located in Russia’s Kalegia region is seeking to enter the crypto mining industry after US sanctions forced the plant to close and shut down productions in April 2018.
Rusal, the second-largest aluminum company in the world, is now leasing its Nadvoitsy Aluminum Plant to the Russian Mining Corporation (RMC), a crypto startup that plans to promote and expand Bitcoin (BTC) mining across the country.
Notably, Rusal had been ordered by the US Office of Foreign Assets Control (OFAC) to shut down the plant following the US Treasury’s designation of the company’s major shareholder, Oleg Deripaska, as a Russian Oligarch.
According to the founder of RMC, Dmitry Marinichev, the forced closure of the aluminum plant in Kalegia left it unprofitable for Rusal. The energy supply is barely utilized, and the people near the aluminum plant are mostly jobless. Although the sanction had been lifted as a result of Deripaska relinquishing his shares in the company, the operations have not resumed.
Dmitry Marinichev, who is also the country’s internet ombudsman, said that RMC plans to bring back the plant in business by selling computing power. He revealed that the mining corporation aims to cover 20% of the global Bitcoin mining industry. The endeavor would be pursued alongside Cryptonex, a decentralized cryptocurrency based in the UK.
As calculated by the Russian business website RBC, at current Bitcoin prices, this goal would bring the company around $100 million every month.