VALCO’s smelter expansion plan to support 25,000 downstream jobs

The Volta Aluminium Company Limited (VALCO) announced the plan for expanding its smelter operational capacity to 40 per cent from the current 23 per cent. The initiative supports Ghana’s downstream value-addition chain, overcoming the limitations of exporting primary aluminium only. This strategic shift has helped VALCO evolve from its previous role of primary aluminium producer to one also focused on broader industrial development and financial boost. 

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The initiative, called the Continuous Cast Rod (CCR) project, will contribute 1 per cent to Ghana’s GDP, which is approximately USD 1 billion, through expanded aluminium-based industries. Moreover, it has the potential to generate more than 25,000 direct and indirect jobs across manufacturing, logistics and allied services.

The project was brought forth on January 5, after the Board of Directors took the official tour of the company’s facilities. Dr Robert Makila Sambian, Chief Executive Officer of VALCO, stated that the expansion plan would significantly contribute to Ghana's goal of establishing a well-integrated aluminium industry.

He explained that the approach was related to the broader Integrated Aluminium Industry (IAI) strategy, which the government is executing via Ghana Integrated Aluminium Development Corporation (GIADEC).

Dr Sambian noted, "As part of the strategy, and to support enhanced operations, new equipment, including lift trucks, pay loaders, tractor heads and other critical machinery, has been installed to enhance the company's operations."

He outlined the company’s short-term strategy, which includes four key projects, viz., increasing production to fully utilise two potlines of 200 cells, adding value by diversifying from the primary aluminium export sector, converting from residual fuel oil to natural gas for cost reduction, and installing scrubbers to capture and reuse fluoride, thereby addressing environmental sustainability aims.

Dr Sambian emphasised that the modernisation plan aims to transform Ghana's aluminium sector by reducing reliance on exports and increasing focus on local refining, smelting, and downstream manufacturing to support a value-driven industry. 

VALCO’s nameplate capacity of annual production is 200,000 tonnes of primary aluminium, which sometimes does not meet the mark due to investment gaps. The modernisation strategy to expand and produce 80,000 tonnes more annually to increase 40 per cent capacity and reach a full capacity of 300,000 tonnes per year would strengthen the position of VALCO in the aluminium industry. 

Image source: https://www.valcotema.com/ 

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