Ghana advances plan for large-scale alumina refinery with proposal submission

An investor selection committee has been formed in Ghana that has delivered its findings on proposals to establish the country’s first large-scale alumina refinery, a development officials say could finally reverse decades of exporting raw bauxite while importing higher-value finished products at a premium. The committee formally handed its options analysis report to the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, at a ceremony in Accra on Tuesday, 6 January. The review followed an extensive assessment of bids submitted to the Ghana Integrated Aluminium Development Corporation (GIADEC), the state body created by Parliament in 2018 to steer the development of a globally competitive, integrated aluminium industry. Addressing stakeholders at the handover, Buah framed the refinery project as inseparable from the long-delayed revival of the Volta Aluminium Company (VALCO). In his remarks, he underlined that the refinery would supply alumina directly to the smelter, providing the foundation for downstream aluminium manufacturing while stimulating the growth of industrial clusters linked to transport, energy, rail and port infrastructure.

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According to the minister, the stakes go well beyond new facilities. Ghana has mined and exported bauxite in its raw form since the 1940s, a model that has historically transferred most value addition abroad. Establishing a domestic alumina refinery would allow the country to process bauxite locally before feeding it into VALCO, keeping skilled employment, industrial know-how and higher-value exports within the national economy. Over time, officials believe this could strengthen export earnings, support the cedi and reduce exposure to volatility in global commodity markets.

The 12-member investor selection committee applied a two-stage evaluation framework designed to test both commercial and developmental credibility. Proposals were subjected to qualitative scoring, decision matrices and SWOT analysis, followed by in-person interviews and enhanced due diligence. Assessment criteria included financial strength, technical expertise, access to sustainable power, environmental and social responsibility, and governance structures intended to safeguard shareholder and national interests.

Committee co-chairpersons Augustus Amegashie and Professor George Armah said the process builds on years of policy efforts to address structural weaknesses in Ghana’s aluminium value chain. They cautioned that without swift, strategic intervention, VALCO faces the risk of irreversible decline.

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VALCO began commercial operations in 1967 with an installed capacity of 200,000 tonnes per year. In recent years, however, output has remained a fraction of that level. Current production stands at roughly 40,000 tonnes annually. Buah urged that once an investor is selected, work should begin in 2026, with the goal of restoring capacity to at least 200,000 tonnes per year by the end of 2028.

The employment implications are significant. A fully revitalised VALCO, the minister said, could directly employ at least 6,000 young people. The construction of the alumina refinery is expected to create thousands of additional jobs across engineering, technical services, skilled trades, logistics, and supply chains.

GIADEC’s Chief Executive Officer, Reindorf Twumasi Ankrah, reiterated the corporation’s mandate to establish a fully integrated aluminium industry capable of creating large-scale employment while positioning Ghana as a serious participant in the global aluminium market. He called on all stakeholders to work collaboratively to ensure that President John Dramani Mahama’s economic reset agenda is realised within the sector.

Officials also emphasised that the investor selection process reflects lessons learned from earlier extractive models that delivered limited domestic benefit while leaving environmental and social costs behind. Ghana’s approach places social, governance and environmental considerations, alongside financial strength, in a bid to secure partnerships that serve both commercial objectives and long-term financial goals.   

The committee’s report has now been submitted to the GIADEC Board for consideration in line with its statutory mandate. Within GIADEC’s Master Plan for the Integrated Aluminium Industry, the alumina refinery and the modernisation of VALCO are designated as Projects 3 and 4, respectively. The Cabinet has already approved the engagement of a strategic partner for the VALCO upgrade.

For policymakers, the refinery represents the long-missing link in Ghana’s aluminium value chain. For over six decades, VALCO has relied on imported alumina to sustain its smelting operations. Once the refinery comes on stream, Ghana will for the first time refine its own bauxite into alumina, feeding a modernised domestic smelter and anchoring a more resilient, value-driven aluminium industry.