The Volta Aluminium Company (VALCO) is seeking Cabinet approval for about US$700 million private sector investment to revamp the company.
Currently producing about 50,000 metric tonnes aluminium per annum, the investment would enable the company produce to its full capacity of 300,000 metric tonnes yearly.
According to Managing Director of the Ghana Integrated Aluminium Development Corporation (GIADEC), Michael Ansah, the revamping of VALCO was one of the four strategic projects being embarked on to develop Ghana’s Aluminium industry.
He was speaking in Accra yesterday when the Minister of Lands and Natural Resources, Samuel Abdulai Jinapor undertook a working visit to the company.
GIADEC, established through an Act of Parliament, 2018 (Act 976) to promote and develop a globally competitive integrated aluminium industry, is the holding company for all government investments and interests in the aluminium industry, including VALCO, Ghana Bauxite Company, and the mining rights to Ghana’s bauxite reserves.
He said the other projects, included the expansion of existing mine at Awaso and building of a refinery; joint venture partnership between GIADEC and new partner Rocksure International to build a mine at Nyinahin-Mpasaaso and a refinery solution and the development of a mine at Kyebi, a second mine at Nyinahin-Mpasaaso and building of a refinery.
The four projects, which would require US$6 billion investments would be private sector-led and executed in partnership with key strategic investors.
The real impact of an integrated aluminium industry, according to Mr Ansah, would be at the downstream sector where demand for aluminium and aluminium related products were expected to rise especially with the establishment of various car manufacturing plants in the country.
“This value-addition drive will not only result in a thriving local economy but will significantly cut down on the importation of aluminium and aluminium products,” he added.
Mr Jinapor, on his part, said, a master plan for the retooling of VALCO would be put before cabinet for deliberation in the coming weeks.
He reiterated the government’s commitment to building an integrated aluminum industry that ramp up industrialisation in the country.
He commended the management of GIADEC and VALCO for their various efforts in realising the President’s vision for an integrated aluminium industry.
The minister highlighted the challenges ahead in developing an aluminium industry, adding that the development of the relevant framework and structures had set the tone for an effective and efficient industry.
Mr Jinapor called for concerted efforts from all stakeholders in establishing the aluminium industry.
BY CLAUDE NYARKO ADAMS