The Ministry of Lands and Natural Resources has today, August 21,2026 inaugurated the government’s Negotiations Team for the modernisation of the Volta Aluminium Company Limited (VALCO).
The team has been tasked to lead discussions and negotiate definitive terms of engagement with the strategic partner or investor for the retooling, expansion and long-term sustainability of VALCO as part of Ghana’s Integrated Aluminium Industry agenda.
Inaugurating the team, the Sector Minister emphasised Government’s commitment to revamping VALCO to make it efficient, profitable and globally competitive, while protecting the strategic national interest in the aluminium value chain.
He charged members of the committee to be transparent, diligent and to ensure value for money, noting that VALCO remains a critical national asset that must not be allowed to collapse.
The negotiations are expected to focus on the technical capacity, financial strength, experience in smelter operations, and commitment of the prospective investor to long-term investment in the aluminium sector.
This move comes at a time when VALCO is facing severe operational challenges, with active cells dropping from 127 in 2025 to about 90 as of August 2026 due to aging equipment and power and supply chain constraints.
Members of the Negotiations Team include representatives from the Ministry of Lands and Natural Resources, Ghana Integrated Aluminium Development Corporation (GIADEC), Ministry of Finance, Attorney-General’s Department, and the Chief Executive Officer of VALCO.
The Ministry has assured workers, stakeholders and the general public that Government will not privatise VALCO outright but will bring on board a credible partner to modernise the plant and secure jobs.
BACKGROUND
The Volta Aluminium Company Limited (VALCO) was established in 1964 as part of Dr. Kwame Nkrumah’s vision to use power from the Akosombo Dam to drive an integrated aluminium industry in Ghana.
The smelter, located in Tema, was designed to operate over 200 pots with a capacity of 200,000 tonnes per annum. At its peak, it was a major industrial employer and foreign exchange earner.
In 2008, Government of Ghana acquired 100% shares of VALCO after Kaiser Aluminium exited. Since then, the plant has struggled with inconsistent and expensive power, aging rectifiers and carbon plant equipment, and lack of capital for retooling.
The process to find a strategic investor is not new. It follows a longstanding policy direction which dates to 2022 when Cabinet approved GIADEC and its subsidiary VALCO’s request for approval to secure a strategic equity investor for the modernisation project.
In the same year, an independent comprehensive technical and financial assessment conducted by KPMG in 2022 recommended equity investment as the most commercially viable option for reviving the smelter. 9194
In 2025, a 12-member cross-sectoral committee, comprising representatives from VALCO, GIADEC, Ministries of Lands and Natural Resources, Energy & Green Transition, Finance, and Trade, was inaugurated to evaluate proposals* from interested entities.
The committee was inaugurated in November 2025 by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah and submitted its options analysis report on January 7, 2026.
In 2018, Government established GIADEC to lead the development of the full bauxite to aluminium value chain, with VALCO as the anchor smelter. GIADEC has reiterated that Government has no intention to sell VALCO, but will cede a portion of its equity to a strategic investor in exchange for capital injection and retooling.
