Lands Ministry outlines $600m plan to revamp VALCO operations

The Ministry of Lands and Natural Resources has unveiled a comprehensive two-phase strategic plan to revitalize the Volta Aluminium Company (VALCO), with a total estimated cost of $600 million. This initiative, part of the government's broader "Resetting Agenda," aims to modernize the aging smelting facility and significantly scale up its production capacity to better leverage Ghana's vast bauxite reserves. The government is currently seeking strategic external investors to provide the necessary capital and technical expertise to bring the facility to international standards.

The first stage of the project, designated as the optimization phase, is expected to cost approximately $70 million. VALCO Chief Executive Officer Dr. Robert Makila Sambian reported that the company has already made progress by increasing its operational pots from 114 to 200 to boost immediate production. Officials estimate that this initial phase will be completed within the next 18 months, subject to the conclusion of ongoing negotiations with potential investors and subsequent Cabinet approval.

The second and more intensive phase focuses on a complete transformation of the smelter's infrastructure. VALCO currently operates with only two active pot lines, while three others remain inactive due to technical and financial constraints. The modernization effort is designed to replace obsolete technology, with the long-term goal of increasing annual production capacity to 1.5 million metric tonnes within a decade. This expansion is intended to position the company as a competitive player in the global aluminium market.

This revitalization effort is a central pillar of Ghana's Integrated Aluminium Development agenda, which seeks to create a value-added industrial chain for the country's mineral resources. By transforming VALCO into a modern, high-capacity smelter, the administration aims to move away from the export of raw bauxite toward domestic processing. Success in securing these strategic investments is viewed as critical for driving industrial growth and enhancing the country's economic self-reliance.