Accra: The Volta Aluminium Company (VALCO) is grappling with a substantial financial crisis, facing debts amounting to approximately US$400 million, as revealed by the Ghana Integrated Aluminium Development Corporation (GIADEC). The most significant portion of this debt is owed to power suppliers, with the Volta River Authority (VRA) and the Ghana Grid Company (GRIDCo) being owed between US$200 million and US$300 million collectively.
According to Ghana Web, VALCO also has liabilities of about US$15 million to suppliers of essential raw materials, including alumina, petroleum coke, and fluorides. Additionally, local suppliers are owed nearly US$1 million. Reindorf Twumasi Ankrah, the Chief Executive Officer of GIADEC, stated that VALCO's path to clearing its debts hinges on returning to profitability. He emphasized the necessity for fresh capital and modern technology to rejuvenate the company's operations.
The financial predicament has been exacerbated by equipment failures that have significantly curtailed production since June 2026. VALCO has witnessed a reduction of over 25 percent in its operating capacity due to aging machinery, leading to a halving of monthly aluminium production and a decline in the quality of metal produced. This downturn has impeded the company's ability to meet customer demands and generate sufficient revenue to manage its debts.
Ankrah explained that the decrease in production directly impacts revenue generation, further complicating the company's capacity to fulfill financial obligations and invest in essential maintenance. Officials estimate that reversing the production decline will necessitate several million dollars in the short term, including US$351 million to fully operate two production lines and an additional US$239 million to modernize three dormant production lines.
To address these challenges, Ankrah highlighted the government's strategy to attract a strategic investor to infuse capital into VALCO, emphasizing that this move is aimed at revitalizing the company rather than selling it. He assured that the government's directive includes safeguarding workers' jobs throughout the investment process. Nonetheless, the proposal to introduce a strategic investor has met resistance from some VALCO employees and the Industrial and Commercial Workers' Union (ICU-Ghana), who express concerns about potential privatization risks.