The current global aluminium market development is anticipated to drive potential gains of the Volta Aluminium Company (VALCO), as the government continues to intervene to bring back operations of the one-time mainstay of the Ghanaian economy.
According to the Chief Executive Officer of the Ghana Integrated Aluminium Development Corporation (GIADEC), Michael Ansah, there has been a significant rise in demand and price of aluminium on the world market.
“The world market today is in deficit in terms of aluminium supply. China and other big markets are demanding aluminium, and that’s what is accounting for the upward trend in pricing. With the deficit that is being forecast for the mid-2020s, it positions us to be in a strong place to drive this.” And because of this, Mr. Ansah noted, “the timing for the development of Ghana’s Integrated Aluminium Industry (IAI) is favourable”.
Meanwhile, an estimated US$700million investment is required to retrofit the entire plant, bring in new technology among others, for the company’s overall modernisation drive.
The modernisation and expansion of VALCO – to increase its capacity and upgrade equipment to new and more efficient technology – forms part of GIADEC’s 4 projects of the IAI launched by President Akufo-Addo in September 2021.
All four projects require an investment of about US$6billion to be executed, of which VALCO is earmarked as ‘Project 4’.
The others are the expansion of the Awaso Mine and development of a refinery; development of a mine and refinery at Nyinahin Mpasaso area; as well as an integrated project also in the Nyinahin and Kyebi areas, all of which are in various stages of development.
Speaking during a working visit by the Minister of Lands and Natural Resources, Samuel Abu Jinapor, to the wholly Ghanaian-owned smelter, Mr. Ansah said: “VALCO is very much at the core of GIADEC’s strategic plan to develop the entire value chain of IAI”.
The IAI, he observed, is everything around bauxite mining, alumina refining and aluminium smelting and, ultimately, the development of downstream industries. “We are actively engaged in making sure that we can partner with various companies to establish downstream industries to ensure that we can lock-in the value of what we are doing.”
At the moment, VALCO’s production capacity is around 50,000 metric tonnes out of the installed capacity of 200,000 metric tonnes. It is expected that the needed investment will push the production capacity to 300,000 metric tonnes.
The minister, Mr. Jinapor – who was also joined on the visit by the board members of VALCO, reiterated government’s commitment toward the modernisation of VALCO to improve efficiency and increase its capacity and make it globally competitive. “The whole rearrangement of VALCO’s direction in alignment with GIADEC is all geared toward establishment of the IAI.”
The tour forms part of finalising a master-plan by the ministry to be presented to Cabinet for approval to proceed with the search for a strategic investor to partner the Ghana Integrated Aluminium Development Corporation (GIADEC) in the modernisation and expansion of VALCO.
The Chief Executive of VALCO, Daniel Acheampong, assured the minister and his delegation of VALCO’s readiness and resolve to play its part in the development of a fully operational Integrated Aluminium Industry in Ghana.
