Aluminium growing prices anticipate securing potential gains of VALCO

The present global aluminium market progress is predicted to navigate probable dividends of the Volta Aluminium Company (VALCO), as the Ghana government pursues to materialize for reviving the operations of the one-time centrepiece of the nation’s economy.

Michael Ansah, the CEO of Ghana Integrated Aluminium Development Corporation (GIADEC) stated, “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, the timing for the development of Ghana's Integrated Aluminium Industry (IAI) is favourable.”

Concurrently, an estimated US$700 million investment is prescribed to redevelop the entire aluminium smelter, while attracting new technologies among others for the aluminium company’s overall modernisation drive.

The modernisation and expansion of VALCO are essential to augment its capacity and upgrade equipment to a new and more efficient technology platform forms a part of GIADEC's 4 projects of the Integrated Aluminium Industry inaugurated by President Akufo-Addo in September 2021.

However, all of the four projects require an investment of about US$6billion to be executed, of which VALCO is assigned as 'Project 4', while the others are the expansion of the Awaso Bauxite Mine and development of an alumina refinery, exploitation of a mine and establishment of alumina refinery at Nyinahin Mpasaso area and also an integrated project in the Nyinahin and Kyebi areas, all of which are in various stages of development.

Ansah said: “VALCO is very much at the core of GIADEC's strategic plan to develop the entire value chain of IAI.”

He witnessed that IAI is essentially around bauxite mining, alumina refining and aluminium smelting and, ultimately, the development of aluminium downstream industries in Ghana.

He added, “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.”

VALCO's present production capacity is around 50,000 tonnes out of the installed capacity of 200,000 metric tonnes. However, it is envisioned that the needed investment will push the production capacity to 300,000 tonnes.

Samuel Abu Jinapor, the Minister for Land and Natural Resources, who was also joined on the visit by the board members of VALCO, recapitulated the Ghana government's commitment toward the modernisation of VALCO to enhance efficiency and inflate its capacity towards driving it to become globally competitive.

Daniel Acheampong, the CEO of VALCO delivered assurance by commenting, “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.”