Ghanaian Union Backs Government Search for VALCO Investor, Disputes Cost Estimates

The Professional and Management Staff Union (PMSU) of Ghana's Volta Aluminium Company (VALCO) has publicly backed the government's initiative to secure a strategic investor for the struggling company. The union distanced itself from recent demonstrations against this effort, stating they were neither consulted nor informed about the protests.

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The move is critical to restoring the fortunes of the ailing aluminium smelter.

In a statement released in Tema, the PMSU reaffirmed its support for the government's decision, deeming it critical for reviving the ailing aluminium smelter. The union highlighted that efforts to find an investor have been ongoing for over five years, during which the plant's condition has continued to deteriorate. They emphasized that significant capital investment is unavoidable for rehabilitating obsolete infrastructure, restoring competitive production capacity, and ensuring reliable access to power and raw materials – needs that cannot be met through internal funding.

Furthermore, the PMSU strongly refuted claims that $60 million would be adequate to restore the smelter to efficient operation. According to assessments by their engineers and technical professionals, much of VALCO's equipment is obsolete and beyond repair due to a lack of spare parts and technical support. The union estimates that a complete rebuild to achieve competitive operation would require more than $700 million. They cautioned that a $60 million intervention would only offer temporary relief, leaving fundamental structural issues unresolved and potentially leading to further costs for the state.

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Assessments by its engineers and technical professionals showed that much of the equipment had become obsolete and, in several cases, could no longer be refurbished due to the unavailability of spare parts and technical support.

The union urged the government to expedite the process of securing a strategic investor and to subject all proposals to transparent financial and engineering evaluations. They also warned that demonstrations suggesting internal divisions could deter potential investors. The PMSU reiterated its commitment to VALCO's revival and the growth of Ghana's aluminium industry, stressing that long-term sustainability hinges on substantial investment and a credible strategic partnership.

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A $60 million intervention would only provide temporary relief while leaving fundamental structural challenges unresolved, potentially leading to further deterioration and additional cost to the state.