Gov’t to Return VALCO to Lands Ministry by End of 2026
The government has announced plans to return the Volta Aluminium Company Limited (VALCO) to the Ministry of Lands and Natural Resources by the end of 2026, as part of efforts to reposition Ghana’s aluminium industry as a key driver of national industrial transformation.
The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, disclosed this during a retreat for agencies under the ministry held in Ellembelle in the Western Region. He explained that the decision is aimed at ensuring closer institutional alignment between VALCO and the Ghana Integrated Aluminium Development Corporation (GIADEC), which is leading government’s Integrated Aluminium Industry agenda.
According to the minister, placing VALCO under the Lands Ministry will strengthen coordination across the aluminium value chain, from bauxite mining and alumina refining to aluminium smelting and downstream manufacturing. He noted that although VALCO was earlier moved to the Ministry of Energy, government has resolved to return the company to Lands and Natural Resources, where its operations more directly align with the country’s mineral development strategy.
Mr. Armah-Kofi Buah further assured mining and host communities that a revitalised VALCO, working closely with GIADEC and the Ghana Integrated Steel Development Corporation (GISDEC), will deliver tangible socio-economic benefits. These include job creation, local content opportunities and broader economic growth, particularly for communities affected by mining and industrial activities.
“Very soon, we will stop talking only about gold and begin focusing more on the iron, steel and aluminium industries,” the minister said, underscoring government’s intention to diversify Ghana’s mineral-driven economy.
VALCO, established in 1967 and located in Tema, is a state-owned aluminium smelter with an installed capacity of about 200,000 tonnes per year. However, the company has faced persistent challenges over the years, including high energy costs, ageing infrastructure and inconsistent operations, leading to prolonged periods of shutdown and production well below capacity.
To address these challenges, government has adopted an Integrated Aluminium Industry strategy, which seeks to ensure that Ghana adds value to its bauxite resources rather than exporting them in raw form. Central to this vision is the modernisation of VALCO and the establishment of an alumina refinery to supply refined feedstock to the smelter.
The planned return of VALCO to the Lands Ministry is expected to consolidate oversight of the aluminium sector and accelerate efforts to transform the company into a viable anchor for Ghana’s industrialisation drive.
