Team formed to negotiate VALCO modernisation deal

Ghana's Ministry of Lands and Natural Resources has established a Negotiations Team tasked with leading discussions with a strategic investor to modernize and expand the Volta Aluminium Company Limited (VALCO). The team's mandate is to negotiate definitive terms for engaging a credible strategic partner to retool the Tema-based aluminium smelter, aiming to restore its operational efficiency and global competitiveness.

Inaugurating the team in Accra, Minister for Lands and Natural Resources, Mr. Emmanuel Armah-Kofi Buah, underscored the government's commitment to revitalizing VALCO into a profitable and competitive enterprise while safeguarding Ghana's strategic interests in the aluminium value chain. He urged the team to conduct negotiations with transparency and diligence, ensuring value for money, emphasizing VALCO's status as a critical national asset.

The negotiations will involve assessing prospective investors based on their technical capacity, financial strength, experience in smelter operations, and commitment to long-term investment in Ghana's aluminium industry. This initiative comes as VALCO grapples with significant operational challenges, evidenced by a decline in active cells from 127 in 2025 to approximately 90 by August 2026. These issues are attributed to aging equipment, power supply constraints, and supply chain disruptions.

The Negotiations Team includes representatives from key government bodies such as the Ministry of Lands and Natural Resources, the Ghana Integrated Aluminium Development Corporation (GIADEC), the Ministry of Finance, the Attorney-General’s Department, and the CEO of VALCO. The Ministry has assured stakeholders that this process does not signify an outright privatization but rather an effort to secure a strategic partner for capital investment, operational improvements, and job preservation. VALCO, established in 1964, has a history of facing challenges, including unreliable power and outdated equipment, despite its initial vision of significant production capacity.

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VALCO remained a critical national asset that must not be allowed to collapse.