Gov’t inaugurates committee to spearhead VALCO modernisation, alumina refinery

The Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has inaugurated an investor selection committee established by the Ghana Integrated Aluminium Development Corporation (GIADEC) to identify strategic partners for modernising the Volta Aluminium Company (VALCO) and developing the country’s first alumina refinery.

The committee, under ministry supervision, has been tasked with evaluating and recommending a partner from a pool of proposals submitted by local and international investors interested in the two projects.

Speaking at a brief ceremony to inaugurate the committee, Mr. Buah said the alumina refinery and modernisation of the VALCO smelter represent two cornerstone initiatives in the country’s broader industrialisation agenda. Together, he said, they demonstrate the country’s commitment to shifting from a raw bauxite-exporting economy to one that processes and adds value locally.

“These two projects are interdependent and mutually reinforcing,” Mr. Buah said. “The refinery will feed the smelter, the smelter will anchor downstream aluminium manufacturing and, together, they will drive the emergence of broader industrial clusters supported by logistics, power, rail and port infrastructure. The transformational agenda is clear: we must move from raw-material export to value addition; from mine and export to process, manufacture and export.”

He said President John Dramani Mahama’s “reset agenda” seeks to integrate the aluminium value chain, beginning with the VALCO modernisation and alumina refinery projects – a vision first championed by the country’s founding president Dr. Kwame Nkrumah.

Mr. Buah added that the ongoing work of GIADEC to develop an Integrated Aluminium Industry (IAI) has the potential to transform the country’s economy and create thousands of jobs.

He said the committee was carefully selected to assess proposals from prospective investors and recommend partners who bring not only financing but also technology, expertise, local capacity building, environmentally responsible practices and a shared commitment to long-term growth.

The minister said the selection process will be transparent, merit-based and aligned with national interests, ensuring that it upholds the integrity of the country’s lands, minerals, environment and host communities.

Acting Chief Executive Officer (CEO) of GIADEC, Reindorf Twumasi Ankrah, reaffirmed the corporation’s commitment to providing all necessary support for the committee to carry out its mandate effectively.

Mr. Ankrah said he is encouraged by the strong interest expressed by reputable investors across the world since assuming office, describing it as a clear sign of investor confidence in President Mahama’s leadership and Ghana’s investment climate.

Background

Ghana embarked on efforts to build an Integrated Aluminium Industry (IAI) decades ago, but has faced delays due to global market conditions, limited financing and power supply constraints. The absence of a domestic alumina refinery remains the missing link in achieving full integration.

Currently, VALCO operates below capacity – producing about 40,000 tonnes of aluminium annually out of its installed capacity of 200,000 tonnes while importing alumina, the raw material for aluminium production, from countries such as Jamaica.

The proposed alumina refinery will address this gap by enabling the country to refine its own bauxite into higher-value alumina to feed the modernised VALCO smelter. This initiative is expected to retain a greater share of value within the national economy.

The modernisation of VALCO, which has long served as a symbol of industrial ambition, aims to restore the plant’s competitiveness and sustainability after years of underperformance due to outdated technology and financial constraints.

Both projects, the refinery and the smelter upgrade, are interdependent and mutually reinforcing. The refinery will supply the smelter with alumina, while the smelter will support downstream aluminium manufacturing. Together, they are expected to drive new industrial clusters supported by improved logistics, power, rail and port infrastructure.

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