Government seeks US$700m investment to revive VALCO, rejects sale claims
The government has begun discussions with potential investors to secure funding for the revival of the Volta Aluminium Company (VALCO), insisting that the state-owned firm has not been sold and remains central to Ghana’s industrialisation plans.
Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah disclosed that about US$700 million is needed to restore the company to full operational capacity, a figure he said the government cannot raise on its own.
Speaking during a meeting with management and staff at VALCO in Tema, Mr Buah explained that attracting private investment had become necessary to reposition the aluminium smelter as a profitable and competitive enterprise.
He assured workers that they would not be sidelined in the process, announcing that employee representatives would be involved in negotiations alongside management to ensure their interests are reflected in any agreement.
The minister also dismissed reports that VALCO had already been sold to businessman Ibrahim Mahama, describing such claims as false and misleading.
“There is no hidden agenda. We are working together to sustain VALCO and fight to revive it,” he told workers, adding that government remains committed to protecting jobs and improving staff welfare.
According to Mr Buah, the company is currently operating only 90 reduction cells despite having the capacity to run about 500. He said restoring full operations could significantly boost production and create thousands of additional jobs.
The minister noted that VALCO continues to face major financial challenges, including an estimated US$400 million debt burden, making substantial investment critical to its recovery.
He stressed that reviving the company goes beyond preserving jobs, arguing that a stronger VALCO would support Ghana’s ambition to expand local value addition within the minerals sector and drive industrial growth.
Mr Buah said government is evaluating proposals from various companies and remains open to partnerships capable of providing the capital and expertise needed to transform the facility.
He further outlined plans to strengthen Ghana’s aluminium value chain through the development of smelting and refining capacity, describing VALCO as a strategic asset in the country’s industrial agenda.
The minister urged workers to support ongoing efforts to revive the company and cautioned against misinformation that could undermine confidence in the process.
Source: myjoyonline.com
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