Accra: The Chief Executive Officer of the Ghana Integrated Aluminium Development Corporation (GIADEC), Reindorf Twumasi Ankrah, has announced that the government will maintain at least a 30% stake in the Volta Aluminium Company (VALCO) during ongoing negotiations with a strategic investor. This announcement comes in response to concerns from workers and members of the Industrial and Commercial Workers' Union (ICU-Ghana), who have protested against claims of the state-owned aluminium smelter's privatisation.
According to Ghana Web, Ankrah clarified during an interview that the government has no intention of selling VALCO. He emphasized that the process is focused on attracting investment while preserving a significant government stake. "The strategic investor is not buying VALCO," he affirmed, pointing out that the Cabinet's approval was solely to initiate discussions with the preferred investor, and no terms have been finalized.
Ankrah explained that the partnership under consideration involves a strategic equity capital injection to provide the necessary funding and technical expertise to revive VALCO. The plan aims to upgrade the smelter to its full capacity of 200,000 metric tonnes annually and add an extra 100,000 tonnes. He assured that the government would retain a minimum of 30% stake in the restructured company, a move intended to protect the state's interest and ensure VALCO's long-term viability.
The CEO noted that VALCO has not turned a profit for over 15 years, operating at just 20% capacity and amassing debts exceeding $200 million. "VALCO has since worked at a severely limited 20 percent capacity, resulting in persistent year-on-year losses with a debt portfolio of over $200,000,000," Ankrah stated.
Addressing fears of potential job losses, Ankrah assured that no employees would be laid off under the proposed arrangement. "No VALCO employee would lose their job as part of the negotiated package," he said, emphasizing that workers' concerns would be addressed during formal negotiations.
GIADEC has identified the ARCH Consortium as the preferred strategic investor, with discussions set to finalize the shareholding structure while guaranteeing that the government retains no less than a 30% interest in VALCO.