Reindorf Twumasi Ankrah
Chief Executive Officer of the Ghana Integrated Aluminium Development Corporation (GIADEC), Reindorf Twumasi Ankrah, has dismissed claims that the Volta Aluminium Company (VALCO) is being sold.
He said the government is seeking strategic investors as joint shareholders to enable the company stay in production.
“VALCO is not for sale,” he stated at a media engagement. “What is being pursued is a co-ownership arrangement that successive governments have agreed is the most viable way to revive the company.”
Mr. Ankrah, giving further details, said under the proposed plan, production would be restored to the original 200,000 metric tonnes per year and expanded to at least 300,000 metric tonnes within 36 months.
According to him, the estimated investment required for the overhaul is about US$600 million, to be provided by a strategic partner in exchange for equity.
He said after assuming office on March 2, 2024, he reviewed documents and discovered that efforts to attract private investment into VALCO started at about 2019.
Mr. Twumasi Ankrah indicated that as part of those efforts, KPMG was commissioned to conduct a comprehensive audit of the smelter and propose options for its revival.
“The expectation of the strategic partner is to provide US$600 million in funding (via equity/debt) for the VALCO retrofitting project, enable VALCO position itself in the global industry to benefit from the cost advantages of major players as well as provide strategic technical capacity to promote efficient and environmentally friendly technology, critical raw material sourcing advantages,” he said.
“On May 22, 2022, cabinet approval was granted for GIADEC and VALCO to initiate processes to engage the best-suited strategic investor to accelerate the modernisation and retrofitting of VALCO,” Mr. Twumasi Ankrah disclosed.
Mr. Twumasi Ankrah said a committee has reviewed proposals from investors, having made recommendations with the company’s board, and are currently waiting for approval from cabinet to officially engage investors who have been shortlisted.
He further warned that failure to act swiftly could lead to further job losses, considering how VALCO’s workforce has declined from about 1,800 employees in the 1990s to about 650, adding that the government believes partnership is the best option to revive the company.
“If nothing is done urgently, VALCO will have to shut down completely, and everyone will go home. We are therefore engaging credible partners in the best interest of the country,” the GIADEC CEO added.
A Daily Guide Report