The Ministry of Lands and Natural Resources has inaugurated a government Negotiations Team to lead discussions on the modernisation of the Volta Aluminium Company Limited (VALCO).
The team, inaugurated on Friday, August 21, 2026, will negotiate with a strategic partner or investor on the retooling, expansion and long-term sustainability of VALCO.
The move forms part of Ghana’s Integrated Aluminium Industry agenda, with the government seeking to restore VALCO’s operations and make the company more efficient, profitable and competitive.
During the inauguration, the Sector Minister urged members of the team to conduct the negotiations with transparency and diligence while ensuring value for money.
He stressed that VALCO remains an important national asset and should not be allowed to collapse.
The negotiations will consider the technical ability, financial strength and experience of potential investors in smelter operations, as well as their commitment to long-term investment in Ghana’s aluminium industry.
VALCO is currently facing serious operational challenges. The number of active cells has fallen from 127 in 2025 to about 90 as of August 2026, mainly due to ageing equipment, power challenges and supply chain constraints.
The Negotiations Team includes representatives from the Ministry of Lands and Natural Resources, Ghana Integrated Aluminium Development Corporation (GIADEC), the Ministry of Finance, the Attorney-General’s Department and VALCO.
The Ministry has assured workers, stakeholders and the public that the government does not intend to privatise VALCO outright. Instead, it plans to bring in a strategic partner to modernise the plant and protect jobs.
Background
VALCO was established in 1964 as part of Dr Kwame Nkrumah’s vision to use power from the Akosombo Dam to support an integrated aluminium industry in Ghana.
The Tema-based smelter was designed to operate more than 200 pots with an annual production capacity of 200,000 tonnes. At its peak, the company became a major employer and source of foreign exchange for Ghana.
In 2008, the government acquired 100% of VALCO’s shares after Kaiser Aluminium exited the company.
Since then, VALCO has faced challenges including unreliable and expensive power supply, ageing equipment and limited capital for retooling.
The search for a strategic investor follows an earlier government policy direction. In 2022, Cabinet approved a request from GIADEC and VALCO to secure a strategic equity investor for the modernisation project.
An independent technical and financial assessment conducted by KPMG in 2022 also recommended equity investment as the most commercially viable option for reviving the smelter.
In November 2025, a 12-member cross-sectoral committee was inaugurated to assess proposals from interested investors. The committee included representatives from VALCO, GIADEC and the Ministries of Lands and Natural Resources, Energy and Green Transition, Finance, and Trade.
The committee submitted its options analysis report on January 7, 2026.
GIADEC, which was established in 2018 to lead the development of Ghana’s bauxite-to-aluminium value chain, has maintained that the government does not intend to sell VALCO.
Instead, the plan is for the government to give a strategic investor a portion of its equity in exchange for the capital needed to modernise and retool the company.
