Reindorf Twumasi Ankrah, the Chief Executive Officer of the Ghana Integrated Aluminium Development Corporation (GIADEC), has announced that the Volta Aluminium Company (VALCO) is in a $400 million debt.
According to the CEO of GIADEC, the KPMG audit on VALCO’s indebtedness was at about $400 million, with the company currently valued at approximately $130 million.
He detailed that due to the financial difficulties, VALCO shut down between 2022 and 2023.
Reindorf Twumasi Ankrah revealed that KPMG outlined five possible options for reviving the company, adding that following his resumption of office, he reviewed the KPMG report and consulted the sector minister, leading to the establishment of a 12-member committee.
The CEO explained that the committee’s report was presented to the board earlier this year and was unanimously endorsed, adding that the recommended course of action was the engagement of a suitable strategic investor.
Meanwhile, Reindorf Twumasi Ankrah has refuted claims that Volta Aluminium Company (VALCO) is being sold.
According to him, the Mahama government is pursuing a long-established policy of strategic partnership to rescue VALCO.
He made this clarification in an engagement, where he provided historical and operational context, asserting that the idea of bringing in a strategic investor is not new and predates the current administration.
He noted that by January 2025, VALCO’s debts had ballooned to about US$450 million.
The debt is owed to institutions including GRIDCo, the Ghana Revenue Authority and the Tema Development Corporation.
“The plant was not contributing to GDP, and the government did not have the resources to keep injecting funds into it. “VALCO is not for sale,” he stated. “What is being pursued is a co-ownership arrangement that successive governments have agreed is the most viable way to revive the company.”
Reports stated that, “Under the proposed plan, production would be restored to the original 200,000 metric tonnes per year and expanded to at least 300,000 metric tonnes within 36 months. The first year would target an output of 100,000 metric tonnes, followed by further expansion over the next two years.
Achieving this, he explained, would require retrofitting all six production lines at the plant, many of which are more than 60 years old and highly inefficient. The estimated investment required for the overhaul is about US$600 million, to be provided by the strategic partner in exchange for equity.”
“Mr Twumasi Ankrah revealed that some potential investors, including a Chinese firm, declined to participate after concluding that the same amount could be used to build a new smelter with full ownership. However, a consortium of investors has expressed willingness to partner with the government, citing local content considerations and the benefits of shared risk and reward.
Some of the interested investors, he added, have also indicated readiness to pay the government for the equity stake they acquire, in addition to injecting capital to modernise the facility.
He warned that failure to act swiftly could lead to further job losses. VALCO’s workforce has declined from about 1,800 employees in the 1990s to roughly 650 today, and the number could fall further if production does not improve”, Joy News stated.
Also, Reindorf Twumasi Ankrah revealed Mahama visison to develop an industrial park within the Tema Industrial Enclave.
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