"Gov't has not sold VALCO" – Lands and Natural Resources Minister

The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has firmly dismissed claims that the government has sold the Volta Aluminium Company (VALCO), assuring workers and the public that no such decision has been taken.

Addressing management and staff of the company during a visit to the smelter, Mr. Buah said the government's sole objective is to revive the struggling state-owned enterprise by attracting strategic investment to modernise its operations and restore profitability.

He acknowledged that VALCO is currently facing serious operational and financial challenges, including obsolete equipment, ageing technology, frequent plant breakdowns and huge outstanding debts to power suppliers and other creditors.

According to the minister, the company owes more than US$250 million to power companies, with about US$40 million owed to GRIDCo alone.

He noted that the smelter, which has the capacity to operate 500 reduction cells, is currently running only about 90 cells, resulting in low production, high operating costs and underutilisation of electricity.

Mr. Buah explained that the deteriorating state of the plant has prevented VALCO from operating at its full potential, denying thousands of Ghanaians employment opportunities while affecting businesses that depend on the aluminium industry.

He disclosed that government estimates more than US$700 million is needed to rehabilitate and modernise the company but admitted that the current economic conditions make it impossible for the state to finance the investment alone.

"The government has not sold VALCO," the minister stressed.

"What government has done is to authorise the ministry to engage credible investors who are prepared to inject the capital needed to transform the company. There is absolutely no truth in reports suggesting that VALCO has been sold."

Mr. Buah said government has instructed the company and the ministry to engage investors transparently while remaining open to better proposals that would safeguard the future of the aluminium smelter.

He appealed to workers to support the restructuring process, stressing that resisting reforms would only deepen the company's difficulties and threaten its long-term sustainability.

The minister rejected suggestions that government intends to abandon the legacy of Ghana's first President, Dr. Kwame Nkrumah, who envisioned VALCO as a cornerstone of the country's industrialisation agenda.

He reaffirmed President John Dramani Mahama's commitment to preserving and strengthening the company, insisting that the administration is determined to restore VALCO into a viable and competitive enterprise capable of creating jobs, settling its debts and contributing significantly to Ghana's economic growth.

"We have a responsibility to revive VALCO, make it profitable, make it self-sustaining and create opportunities for thousands of Ghanaians. There is no hidden agenda. Our focus is to ensure that VALCO survives and thrives for future generations," Mr. Buah stated.

On his part, the Chief Executive Officer of the Volta Aluminium Company (VALCO), Dr. Robert Makila Sambian (Ph.D, FCCA, CA), has reaffirmed the company's support for government's efforts to secure strategic investment to revive the state-owned aluminium smelter, expressing confidence that the process will reposition VALCO for long-term growth.

Dr. Sambian commended the minister for maintaining open communication with the company's management and staff throughout the process.

He recalled that the minister initially delegated his deputy to communicate Cabinet's decision while he was away and later returned to personally engage workers and address their concerns.

According to Dr. Sambian, the minister has consistently assured management that VALCO will remain at the centre of all negotiations with prospective strategic investors.

He disclosed that the committee being established to oversee the negotiation process will include two representatives from VALCO, a move he said demonstrates government's commitment to transparency, inclusiveness and stakeholder participation.

Dr. Sambian further indicated that Cabinet's approval for negotiations was granted with flexibility, allowing government to explore alternative investment options should discussions with any prospective investor fail to produce a mutually beneficial agreement.

He appealed to workers and the public to remain calm and avoid being influenced by misinformation surrounding the ongoing process.

"I believe much of what is happening stems from misunderstanding, miscommunication or disinformation. Let us all exercise patience and allow the process to unfold, bearing in mind that every step government is taking is intended to secure the future of VALCO and protect the interests of its workers," he said.

The VALCO CEO assured the Minister for Lands and Natural Resources of the company's full cooperation throughout the negotiations, expressing optimism that the initiative would restore the company to full productivity and strengthen Ghana's industrial sector.

"We have confidence in the process and will support the minister every step of the way. I believe that in the end, VALCO will emerge stronger, Ghana will benefit, and the efforts of the minister and President John Dramani Mahama to revive this strategic national asset will leave a lasting legacy," Dr. Sambian stated.

Story by: Joshua Kwabena Smith and Priscilla Dodoo