An additional hydro power unit is set to bring in more benefits to Ghana’s Volta Aluminium Company (VALCO). The 75 MW unit will help VALCO procure power at a competitive rate of $0.035/kwh in the first quarter of the next financial year.
The cost advantage will expectedly allow the primary aluminium company to add one more pot-line to its current one pot line-equipped production facility, which churns out 40,500 tonnes of the metal.
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According to the Select Committee on Mines and Energy on the Annual Budget Estimates report of the Ministry of Energy for the year ending December 31, 2018, the expansion will result in increase in revenue and payment of Value Added Tax to government from $79 million to $150.75 million and $7.6 million to $16.1 million per annum respectively.
The production expansion is further expected to create about 1,200 direct employment, including 200 at VALCO and 1,000 in the downstream industries comprising firms such as Aluworks, Western Rods and Allied Industries.
VALCO will also supply aluminium to a proposed LED manufacturing venture that is expected to create an additional 330 direct employment opportunities.
VALCO is one of the largest enterprises in Ghana and the second-largest aluminium smelter in Africa down south of the Sahara. It was founded by Kaiser Aluminium but is now wholly owned by the Ghana government.
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