Government forms team to negotiate VALCO strategic partnership

The government has established a team to negotiate a strategic partnership aimed at modernizing the Volta Aluminium Company Limited (VALCO) and ensuring its long-term viability. The Negotiations Team, inaugurated by the Ministry of Lands and Natural Resources on August 21, 2026, is tasked with establishing terms for a strategic partner to invest in the Tema-based aluminium smelter.

This collaboration is expected to furnish VALCO with the necessary capital and technical expertise for refurbishment, expansion, and enhanced efficiency.

Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, emphasized the government's dedication to transforming VALCO into a profitable and globally competitive entity. He urged the team to conduct negotiations transparently and safeguard Ghana's interests, ensuring a deal that delivers value for money. Buah stressed that VALCO, established in 1964 as part of Ghana's post-independence industrialization drive, is a critical national asset that must not be allowed to fail.

The prospective investor will be evaluated based on financial capacity, technical acumen, experience in operating aluminium smelters, and readiness to invest sustainably in Ghana's aluminium sector. VALCO currently grapples with operational challenges, such as a decline in active cells from 127 in 2025 to approximately 90 in August 2026, aging machinery, power supply issues, and supply chain difficulties.

Government has clarified that the proposed partnership does not equate to an outright sale of VALCO. Instead, it involves a strategic investor providing fresh capital and technical expertise in exchange for an equity stake in the company. The six-member Negotiations Team includes representatives from various ministries and VALCO itself. VALCO, originally equipped with over 200 pots and capable of producing 200,000 tonnes annually, was acquired by the government fully in 2008 following Kaiser Aluminium's withdrawal.

The pursuit of a strategic investor has been ongoing since 2022, with Cabinet approval of proposals by GIADEC and VALCO to explore equity investment. A KPMG technical and financial assessment conducted in 2022 deemed equity investment as the most commercially viable option for the smelter's rehabilitation. In November 2025, government also set up a 12-member committee to evaluate proposals from potential investors, which subsequently submitted an options analysis report on January 7, 2026.

GIADEC remains committed to securing a credible partner capable of funding VALCO's modernization while supporting jobs and the broader aluminium value chain.