The government has established a dedicated team to initiate negotiations with a potential strategic investor, aiming to modernize Volta Aluminium Company Limited (VALCO) and secure its long-term future. This initiative comes amidst growing concerns regarding VALCO’s operational challenges, particularly declining activity levels within the smelter. The Negotiations Team, inaugurated by the Ministry of Lands and Natural Resources on Friday, August 21, 2026, with a mandate to agree on the terms for bringing a strategic partner into the Tema-based aluminium smelter, represents a critical step in revitalizing the company’s operations. The partnership is projected to provide the necessary capital and technical support required for retooling, expanding, and improving VALCO’s efficiency, a task deemed vital for maintaining Ghana’s industrial competitiveness. The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, emphasized the government’s commitment to transforming VALCO into a profitable and internationally competitive entity. He charged the team to approach the negotiations with transparency and ensure any agreement secured would protect Ghana’s interests and deliver value for money. Mr. Buah stressed that VALCO was an important national asset and could not be allowed to collapse. The prospective investor will be assessed on its financial capacity, technical expertise, experience in operating aluminium smelters, and willingness to make sustained investments in Ghana’s aluminium industry. The six-member Negotiations Team comprises representatives from the Ministry of Lands and Natural Resources, the Ghana Integrated Aluminium Development Corporation (GIADEC), the Ministry of Finance, the Attorney-General’s Department, and VALCO. VALCO, established in 1964 under Ghana’s post-independence industrialisation programme, was initially designed to utilize power from the Akosombo Dam to support the development of an integrated aluminium industry. The smelter was originally equipped with more than 200 pots and had an annual production capacity of approximately 200,000 tonnes. Government acquired full ownership of VALCO in 2008 following the exit of Kaiser Aluminium. Since then, the company has faced persistent challenges, including high electricity costs, aging infrastructure, and limited capital for major upgrades. Attempts to secure a strategic investor have been ongoing since 2022, when Cabinet approved proposals by GIADEC and VALCO to explore strategic equity investment. A KPMG technical and financial assessment conducted that year identified equity investment as the most commercially viable option for the rehabilitation of the smelter. In November 2025, government also established a 12-member committee to assess proposals from potential investors. The committee subsequently submitted its options analysis report on January 7, 2026. GIADEC has maintained that the objective is not to sell VALCO outright but to secure a credible partner capable of injecting the resources needed to modernize the company while supporting jobs and the wider aluminium value chain. VALCO’s current operating position is unsustainable – Lands Minister supports calls for a strategic investor. Don’t push us to the last resort – TUC Chairman warns over alleged VALCO’s potential collapse.” ]”tags”: [
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Source: Adom Online
