The Ghana Integrated Aluminium Development Corporation (GIADEC) has announced that reports suggesting the sale of the Volta Aluminium Company (VALCO) are false.

GIADEC confirmed that as part of ongoing processes for the construction of a greenfield alumina refinery in Ghana and the retrofitting of VALCO, a strategic equity investor has been shortlisted for further engagement regarding the plan to retrofit and expand VALCO. 

According to the released statement, this planned partnership aims to secure the capital and expertise necessary to retrofit and expand VALCO's operations, increase production, safeguard existing jobs, and contribute to Ghana's industrial growth.

The corporation further affirmed that the strategy involves a partial equity ceding arrangement that will provide liquidity while ensuring that the Government, through GIADEC, retains significant ownership and strategic control to drive future growth.

This partnership is a central pillar of GIADEC's integrated national strategy to develop a fully integrated aluminium industry value chain in Ghana, encompassing bauxite mining, alumina refining, aluminium smelting, and downstream manufacturing.

"The partnership is also designed to facilitate a substantial capital injection, introduce advanced technology, and modernise operations."

"The core objectives are to significantly increase production capacity from the current 40,000 tonnes to 300,000 tonnes annually within a period of 36 months. 

"Thousands of direct and indirect job opportunities for the youth and people of Ghana are expected to be created and safeguarded, ensuring the long-term sustainability of VALCO, thereby contributing to Ghana's industrial and economic growth," it stated.

However, it was revealed that the process to identify a strategic equity investor follows a longstanding policy direction dating back to 2022 when Cabinet approved GIADEC and its subsidiary VALCO's request for authorisation to secure a strategic equity investor for the VALCO modernisation or retrofitting project.

The statement explained that an independent comprehensive technical and financial assessment conducted by KPMG in 2022 recommended equity investment as the most commercially viable and legally sound option for reviving the smelter.