Nobody Will Sell VALCO – Minster

By Praisebell Rosemond Larbi

The government is seeking strategic private investment to revive the struggling Volta Aluminium Company (VALCO) as the state-owned smelter battles mounting debts, ageing infrastructure and declining production, Lands and Natural Resources Minister Emmanuel Armah Kofi Buah has said.

Mr. Buah, however, assured workers that the government has no intention of selling the company, insisting that any engagement with private investors is aimed at restoring VALCO’s profitability, expanding production and securing its future as a key part of Ghana’s industrialisation agenda.

Addressing workers at VALCO’s Tema plant, the Minister said the company requires more than US$700 million in fresh investment to modernise its operations and return to sustainable production levels.

He disclosed that VALCO currently owes power suppliers more than US$215 million, while its broader financial obligations, including legacy debts, are estimated at about US$400 million.

According to him, the company’s financial difficulties have been compounded by years of underinvestment, equipment failures and declining operational capacity.

“The intention of government is very, very clear. We have a responsibility to transform VALCO, to make it profitable, to make it self-sustaining and to create opportunity for so many Ghanaians,” Mr. Buah said.

The Minister’s comments come amid concerns from organised labour over reports that government plans to privatise the aluminium producer, which was established under Ghana’s first President, Dr. Kwame Nkrumah, as a major pillar of the country’s industrial development strategy.

Mr. Buah dismissed suggestions that VALCO had already been sold, explaining that Cabinet had only authorised discussions with potential investors who could provide the capital needed to rebuild the company.

“Nobody has closed any deal here. All government has done is to give the Minister the authority to find the solutions to the problems I’ve described,” he stated.

VALCO, which was originally designed to operate 500 smelting cells, is currently running only about 90 cells due to repeated equipment breakdowns.

The Minister explained that the company had planned to increase production capacity to 127 cells this year, but technical challenges had disrupted those efforts.

He noted that operating below capacity has affected the quality of output and increased operational costs, particularly because the company continues to pay for electricity despite reduced production.

“Unfortunately, because of the breakdowns, you are now at about 90. The implications for that is that you are even producing not the quality that you had intended,” he said.

Mr. Buah further revealed that VALCO owes state-owned power providers, including GRIDCo, approximately US$40 million, adding that the company’s challenges go beyond electricity debt.

He said the Ministry of Finance has ruled out direct financial support due to the country’s current fiscal constraints, making private investment critical to the company’s recovery.

“We came to the conclusion that we needed a lot of money, over $700 million. The Ministry of Finance has made it clear: in this period of austerity, I can’t even get you one cedi,” he explained.

The Minister argued that allowing VALCO to continue operating under its current conditions would threaten jobs and weaken Ghana’s ambitions of developing a fully integrated aluminium industry.

He noted that a company with the potential to employ thousands currently has only about 800 workers, despite having the capacity to create more than 5,000 jobs if properly revived.

Government has shortlisted potential investors for discussions with VALCO’s management, although Mr. Buah said authorities remain open to additional proposals capable of restoring the company’s competitiveness.

“Even in the course of the process, we have other companies who have come with proposals that are solid. We are open to every idea that will help VALCO to turn around,” he said.

Reassuring workers, the Minister stressed that any restructuring process would be transparent and focused on rebuilding the company rather than disposing of it.

“Nobody will sell VALCO, not under the watch of President John Mahama. But we have to work and make this place a profitable institution,” he added.

Mr. Buah said reviving VALCO is central to Ghana’s broader goal of developing an integrated aluminium value chain, including refining, processing and downstream manufacturing.

According to him, the foundation of that vision begins with restoring VALCO into a financially stable and productive industrial enterprise.

“It starts from a profitable VALCO. That’s what we should all work together to do,” he said.