VALCO gets ready to make strategic partnership before end of 2023

The Volta Aluminium Company Limited (VALCO) has announced that it might conclude all conversations with a strategic investor before the end of the last quarter of 2023.

The state-owned company has been given permission by the Cabinet and its parent company, the Ghana Integrated Aluminium Development Corporation (GIADEC), to seek private capital to improve its operations.

Dr Henry Benyah, the Chairman of VALCO's Board, has shared that they have hired a transaction advisor to help them find an investor. They are considering both a joint venture and direct participation as options for investment. They are optimistic that they will reach an agreement by the end of 2023.

Dr Benyah exclaimed: "They [transaction advisor] are to manage the process of search and selection for a strategic partner with the requisite technical capacity to deploy the most competitive smelter technology, backed by the needed investments and strategic global linkages in consideration of an agreed equity stake in a restructured VALCO."

VALCO has identified several ways to maximise product value and reduce costs to ensure the sustainability of its operations in the short term. These initiatives will be implemented alongside the final phase of the recovery plan.

During the company's annual general meeting in Accra, Dr Benyah revealed that VALCO is working towards becoming a significant player in the aluminium downstream value chain.

This lies in close proximity to VALCO Modernisation Project, also called Project 4, under the massive plan by GIADEC's Integrated Aluminium Industry (IAI), which is now in progress.

Experts say that the smelter company is an important part of the country's efforts to build a complete aluminium industry, focusing on adding value as outlined in the GIADEC master plan. Many believe that the plan's success depends on the role of VALCO and could greatly benefit the economy if implemented correctly.

VALCO is positive that optimising downstream activities would make its global position, like its contemporaries, richer.

VALCO is aware that the future of aluminium is environmentally sustainable. As a result, it is implementing several eco-friendly initiatives to reduce its carbon footprint and become a green aluminium smelter instead of a net carbon emitter.

The company has a five-year strategic plan from 2020 to 2024, which aims to ensure a sustainable turnaround by maintaining operational stability during the transition to the retrofitted VALCO.

According to Dan Acheampong, the CEO of VALCO, the company has overcome significant obstacles and is now a more stable and productive business. The recovery plan that is being implemented is intended to attract private investors and further improve the company's position.