GIADEC rejects reports of VALCO sale, confirms equity partner talks

The Ghana Integrated Aluminium Development Corporation (GIADEC) has dismissed reports suggesting the government plans to sell the Volta Aluminium Company, saying the claims misrepresent ongoing efforts to revive the state-owned smelter.

In a statement dated, GIADEC said the government has no intention of selling the Volta Aluminium Company (VALCO), stressing that current discussions focus on bringing in a strategic equity investor to support a major retrofit and expansion of operations.

According to GIADEC, the proposed arrangement involves ceding a minority equity stake in VALCO to a private investor in exchange for capital and technical expertise, while the state retains significant ownership and strategic control. The plan, it said, is aimed at reversing the smelter’s decline, safeguarding existing jobs and supporting Ghana’s broader industrialisation drive.

“Reports suggesting that VALCO is being sold are false,” GIADEC said, adding that the equity partnership is designed to inject liquidity, modernise the plant and position the smelter for long-term sustainability. The corporation described the approach as central to its strategy to develop a fully integrated aluminium value chain, from bauxite mining to downstream manufacturing.

The retrofit programme is expected to significantly scale up production. GIADEC said VALCO’s annual output could rise from about 40,000 tonnes to 300,000 tonnes within 36 months once the upgrade is completed, creating and securing thousands of direct and indirect jobs in the process.

The push for an equity partner follows a policy direction approved by Cabinet in 2022, when GIADEC and VALCO were authorised to explore options for modernising the smelter.

An independent technical and financial review conducted by KPMG that year concluded that equity investment was the most commercially viable and legally sound option for reviving operations, GIADEC said.

More recent assessments have reinforced the urgency of the plan. GIADEC pointed to a review of VALCO’s financial position, including its 2025 statement of financial position, which showed continued deterioration and underscored the need for fresh capital to halt further decline.

In 2025, a 12-member inter-ministerial committee was set up to evaluate proposals from potential investors. The committee included representatives from GIADEC, VALCO and the ministries responsible for lands and natural resources, energy and green transition, finance, and trade. Its work was guided by criteria such as job retention, plant expansion using modern technology, value addition and alignment with the government’s 24-hour economy policy.

After completing its work, the committee submitted its recommendations to the GIADEC board and the sector minister for further action.

GIADEC said the planned equity partnership would preserve the national interest while leveraging private-sector efficiency to modernise the smelter. It also sought to reassure VALCO staff that the process would not result in job losses but rather improved working conditions and expanded employment opportunities.

“The clear and consistent policy is to cede a portion of equity in VALCO in exchange for substantial capital injection and technological retooling,” the statement said. “Public support would be critical to restoring the smelter’s contribution to Ghana’s economy.”

The post GIADEC rejects reports of VALCO sale, confirms equity partner talks appeared first on The Business & Financial Times.

Read Full Story