The Ghana Integrated Aluminium Development Corporation (GIADEC) has dismissed reports suggesting the sale of the Volta Aluminium Company
(VALCO).
There were reports of plans to diversify VALCO. But in a statement signed by Chief Executive for GIADEC Reindorf Twumasi Ankrah clarified “as part of ongoing processes for the construction of a greenfield Alumina Refinery in Ghana and the retrofitting of VALCO, a strategic equity investor has been shortlisted for further engagements on the plan to retrofit and expand VALCO.”
The planned partnership according to the statement aims to “secure the capital and expertise necessary to retrofit and expand VALCO’s operations, increase production, safeguard existing jobs, and contribute to Ghana’s industrial growth. The strategy involves a partial equity ceding arrangement that will provide liquidity while ensuring the Government, through GIADEC, retains significant ownership and strategic control to drive future growth.”
He described the partnership is a central pillar of GIADEC’s integrated national strategy to develop a fully Integrated Aluminium Industry value chain in Ghana, encompassing bauxite mining, alumina refining, aluminium smelting, and downstream manufacturing.
“The partnership is also designed to facilitate a substantial capital injection, introduce
advanced technology, and modernise operations. The core objectives are to significantly
increase production capacity from the current 40,000 tonnes to 300,000 tonnes annually
within a period of 36 months. Thousands of direct and indirect job opportunities for the
youth and people of Ghana are expected to be created and safeguarded, ensuring the
long-term sustainability of VALCO, thereby contributing to Ghana’s industrial and
economic growth.” Mr. Ankrah stated.
He further explained the process to identify a Strategic Equity Investor follows a longstanding policy direction, which dates to 2022 when Cabinet approved GIADEC and its subsidiary VALCO’s request for approval to secure a strategic equity investor for the VALCO modernization or retrofitting project. An independent comprehensive technical and financial assessment conducted by KPMG in 2022 recommended equity investment as the most commercially viable and legally sound option for reviving the smelter.
According to the statement a recent review of the finances of VALCO exposed the need for urgent capital injection to into the company.
“A recent review of VALCO’s financial position, including its 2025 statement of financial
position, underscores the urgent need for such a partnership to halt further decline and
restore the company’s productive capacity.”
“In 2025, a twelve-member cross-sectoral Committee, comprising representatives from
VALCO, GIADEC, Ministries of Lands and Natural Resources, Energy & Green
Transition, Finance, and Trade, was inaugurated to evaluate proposals from interested
entities. The work of the Committee was guided by stringent and transparent national
development criteria, including job retention and creation, plant expansion with modern
technology, value addition, and operationalization of the 24-hour economy.
Following the completion of its mandate, the Committee duly submitted its report and
recommendations to the Board of GIADEC and subsequently to the sector minister for
the requisite action.” Mr. Ankrah revealed
He assured government has no intention of selling VALCO but rather a “clear and consistent policy is to cede a portion of GIADEC’s interest or
equity in VALCO to a Strategic Equity Investor in exchange for substantial capital
injection, technological retooling, and comprehensive retrofitting of the smelter. This will
preserve the national interest, leverage private-sector efficiency, and create significant
additional direct and indirect employment opportunities for Ghanaians.”
The development according to management of GIADEC aligns fully with the Government’s broader industrial transformation agenda.
“GIADEC remains focused on reviving production, securing and creating jobs, and
maximizing value for the Ghanaian economy through a modernized and competitive
integrated aluminium industry.”
He stated the modernization of VALCO is a pivotal component of GIADEC’s plan to build a fully integrated aluminium industry in Ghana. Adding it aligns with broader national industrial transformation agendas. Adding the project is expected to revitalise VALCO, elevating its annual production capacity, securing existing employment, and generating thousands of new direct and indirect job opportunities for Ghanaians.
“GIADEC further assures the staff of VALCO that, the partnership will not create job losses
but rather, create more jobs and improved working conditions for the staff.” Mr. Ankrah concluded.
