Gov’t outlines two-phase plan to revamp VALCO; transformation to cost $600m

The Ministry of Lands and Natural Resources has unveiled a two-phase strategy to revitalize the Volta Aluminium Company (VALCO), projected to cost $600 million in total. The company's CEO, Mr. Robert Makila Sambian, revealed the details during a media briefing discussing VALCO's current predicament and the measures required to rectify it.

Phase One of the strategy is dedicated to optimization, with an estimated cost of $70 million. Phase Two will focus on transformation, and has two potential approaches: constructing a new, state-of-the-art pot line or modernizing the existing ones. Currently, VALCO operates only two pot lines while three remain idle, with parts of the latter cannibalized to keep the former running.

The $600 million budget covers the comprehensive renovation of all pot lines. Discussions regarding potential strategic investors are ongoing, following Cabinet's approval. The government has consistently emphasized its commitment to VALCO's revival as part of its Integrated Aluminium Development agenda, aiming to utilize Ghana's bauxite resources to fuel the smelter and spur industrialization.

Established in 1967, VALCO has grappled with operational difficulties due to power supply issues and insufficient investment, leading to the closure of most of its pot lines.