The controversy surrounding the proposed strategic investment process for the Volta Aluminium Company Limited (VALCO) has intensified, with the Ghana Integrated Aluminium Development Corporation (GIADEC) and businessman Mr Ibrahim Mahama separately rejecting claims linking him to a planned acquisition of the state-owned aluminium smelter.
The two denials came after some workers of VALCO, during a protest march in Tema, alleged that Mr Mahama was behind efforts to acquire the company.
While GIADEC described the allegations as false, misleading and without any factual foundation, Mr Mahama also dismissed the claims as malicious and deliberately calculated to damage his reputation.
The development comes at a time when the Industrial and Commercial Workers’ Union (ICU), Ghana, has petitioned President John Dramani Mahama to intervene and halt what it described as the proposed sale of a 70% equity stake in VALCO.
The union argues that VALCO remains a strategic national asset and should remain under full state ownership.
$600m required to retrofit, modernise VALCO
The estimated capital required to retrofit and modernise the smelter is about $600 million—a sum government cannot afford in the current macroeconomic environment.
Under this structure, GIADEC would retain 49% shareholding, while the strategic investor would hold 51%.
The performance-based partnership is designed to revive a strategic national asset and unlock Ghana’s $48 billion bauxite potential.
$450m debt against $113m valuation
VALCO’s valuation stands at approximately $113m while the company carries total debts of about $450 million.
Beyond the immediate turnaround, GIADEC estimates that developing a world-class, export-scale alumina refinery will require $2.5 billion.
Overall, the full integrated aluminium value chain is projected to demand investment of approximately $5 billion.
Ghana is estimated to possess 920 million tonnes of bauxite deposits, conservatively valued at $48 billion. Six mining leases have already been granted.
The proposed investment would fund the engineering, procurement and construction of a 1.5 to 2.5 million metric tonnes per annum alumina refinery, transforming domestic bauxite into high-value alumina.
GIADEC rejects claims of Ibrahim Mahama takeover
In a statement issued in Accra, GIADEC categorically denied reports suggesting that VALCO was being sold to Mr Ibrahim Mahama.
The corporation described allegations reportedly made by some individuals claiming to be VALCO workers and led by one Samuel Watchman Agyeman as “baseless, misleading and without any factual foundation.”
GIADEC stressed that neither Mr Mahama nor any company associated with him had expressed interest in the ongoing strategic equity capitalisation process aimed at securing investment for the retooling and modernisation of VALCO.
“For the avoidance of doubt, GIADEC states emphatically that neither Mr Ibrahim Mahama nor any company associated with him has expressed any interest in the ongoing process to secure strategic equity capitalisation for the retooling and modernisation of VALCO,” the statement said.
The corporation explained that government’s objective is to attract credible strategic investors with the financial strength, technical expertise and global partnerships required to modernise VALCO and restore its position as the anchor smelter within Ghana’s Integrated Aluminium Industry.
GIADEC reaffirmed its commitment to ensuring a transparent and competitive investment process, urging the public, stakeholders and VALCO employees to disregard claims that the company was being sold to Mr Mahama.
It further cautioned individuals against making statements that could create public disaffection and undermine efforts to develop Ghana’s aluminium value chain.
Ibrahim Mahama denies interest in VALCO acquisition
Mr Ibrahim Mahama, through his Special Aide, Mr Rafik Mahama, also issued a strong rebuttal, describing the allegations as false, reckless and without merit.
According to Mr Rafik Mahama, the businessman has never expressed interest in acquiring VALCO and has not submitted any proposal or offer to purchase the company.
“The attention of Mr Ibrahim Mahama has been drawn to a demonstration by the Labour Union of VALCO during which some demonstrators alleged that he was interested in acquiring VALCO. We wish to state categorically that Mr Ibrahim Mahama has no such interest and has not made any offer to acquire VALCO,” he stated.
He rejected suggestions that Mr Mahama had any direct or indirect involvement in any company or consortium seeking ownership of VALCO.
“Mr Ibrahim Mahama has never expressed any interest, directly or indirectly, in acquiring VALCO, nor is he a shareholder, director, promoter, representative or participant in any company or consortium pursuing such an interest,” he stressed.
Mr Rafik Mahama described the allegations as an attempt to tarnish the businessman’s reputation, saying they were part of repeated efforts to drag him into unnecessary public controversy.
“Unfortunately, this allegation is the latest in several vile attempts to impugn the integrity of Mr Ibrahim Mahama and subject him to needless public engagements,” he said.
He defended Mr Mahama’s business record, stating that the businessman had spent nearly four decades building enterprises through innovation, entrepreneurship and investments that had contributed significantly to Ghana’s economic development.
According to him, companies in which Mr Mahama has interests are among the best-managed businesses on the African continent and have consistently operated within Ghana’s legal and regulatory framework.
He noted that the businesses had survived and expanded through seven electoral cycles because they were legally established, properly managed and operated in compliance with the law.
Mr Rafik Mahama cautioned against the circulation of false and defamatory statements capable of damaging the reputation of individuals and corporate entities.
He added that Mr Mahama remained committed to conducting his business activities with integrity, professionalism and respect for the rule of law.
He further disclosed that Mr Mahama had instructed his lawyers to commence legal action over the allegations.
ICU petitions Mahama
Meanwhile, the Industrial and Commercial Workers’ Union (ICU), Ghana, has formally petitioned President John Dramani Mahama to stop what it described as the proposed sale of a 70% equity stake in VALCO.
The petition was presented by ICU General Secretary, Mr Morgan Ayawine, to the Tema Metropolitan Chief Executive, Madam Ebi Bright, after workers embarked on a protest march through major streets in Tema.
The union argued that VALCO remains a strategic national asset and should continue to be owned by the state because of its importance to Ghana’s industrial development agenda.
According to the ICU, information available to the union indicates that GIADEC is progressing with plans to transfer the 70 per cent equity stake in VALCO to Arch Holdings Consortium.
The union warned that such a transaction could permanently alter the ownership structure and control of the company despite opposition from workers and organised labour.
The ICU reminded President Mahama of his 2026 May Day address in Koforidua, where he encouraged organised labour not to remain silent when state-owned enterprises were being mismanaged because workers often suffer the consequences when such institutions collapse.
The union said it was relying on those assurances in seeking presidential intervention.
The ICU maintained that VALCO had recorded significant improvements under its current board and management through a structured five-year optimisation programme focused on improving operational efficiency, expanding production capacity and strengthening competitiveness.
It said investments in plant and equipment, infrastructure rehabilitation, operational improvements and workforce development had started producing positive results, making it an inappropriate time for government to surrender control of the company.
The union argued that VALCO remained central to Ghana’s Integrated Aluminium Industry and should remain wholly state-owned to safeguard national interests, industrial development and sustainable employment.
It warned that transferring majority ownership to a private investor could expose workers to job losses, weaken employee welfare and reduce the state’s long-term financial benefits.
The ICU said government, management and employees had invested significant resources in restoring VALCO and that those gains should not be transferred to private interests.
It appealed to organised labour, civil society organisations and other stakeholders to support efforts to maintain state ownership of the company.
The union warned that if its concerns were not addressed within a reasonable period, it would consult its structures to determine the next course of action, which could take on a national dimension.
Govt seeks strategic investor
The controversy follows government’s broader plan to attract a strategic investor to modernise and expand VALCO as part of efforts to develop Ghana’s Integrated Aluminium Industry.
VALCO was established as a partnership between the Government of Ghana and Kaiser and Reynolds of the United States.
The company began operations in 1967, with Kaiser Aluminium and Chemical Corporation owning 90 per cent of the shares and Reynolds Metals Corporation holding the remaining 10 per cent.
Reynolds later transferred its shares to the Aluminium Company of America (ALCOA) before operations commenced.
Ghana’s first President, Dr Kwame Nkrumah, identified the Integrated Aluminium Industry as a key pillar of the country’s industrialisation agenda.
With Ghana already operating a bauxite mine at Awaso, Nkrumah viewed Kaiser Aluminium’s proposal to establish an alumina refinery and VALCO smelter as a major step towards creating a complete aluminium value chain.
The establishment of VALCO was also central to the development of the Volta River Project, which led to the construction of the Akosombo Hydroelectric Dam.
The smelter was built with an installed capacity of 200,000 metric tonnes of refined aluminium annually.
However, after decades of operation, VALCO faced several challenges, including repeated shutdowns caused by inadequate investment, obsolete technology and limited maintenance.
In 2008, the Government of Ghana under former President John Agyekum Kufuor acquired Kaiser’s shares, making VALCO fully Ghanaian-owned.
The company has since operated with ageing technology inherited from Kaiser Aluminium and Alcoa, resulting in high production costs and reduced competitiveness.
The lack of capital injection and modernisation has forced VALCO to operate below capacity and record losses.
Integrated Aluminium Industry
The creation of GIADEC in 2018 under Act 976 was aimed at developing Ghana’s Integrated Aluminium Industry covering bauxite mining, alumina refining, aluminium smelting and downstream manufacturing.
Government’s 100% ownership of VALCO was transferred to GIADEC, with the company designated as the anchor of the Integrated Aluminium Industry project.
Under the GIADEC master plan, VALCO is expected to increase production from its current levels of about 40,000–50,000 tonnes annually to 300,000 tonnes per year.
To achieve this target, the company requires major transformation, including the replacement of obsolete potlines and upgrading of production facilities.
The VALCO retrofitting project has been estimated to cost about $600 million and will be implemented in phases to allow production to continue without disrupting supply to local downstream companies.
In June 2022, Cabinet approved plans for GIADEC and VALCO to identify and engage a strategic partner with the financial capacity, technical expertise and international networks required for the modernisation programme.
Jobs, exports and industrial growth
Government says a fully modernised VALCO will transform the company from a loss-making entity into a profitable industrial asset capable of supporting Ghana’s economic transformation agenda.
The project is expected to strengthen value addition in Ghana’s bauxite sector by allowing the country to process raw materials into higher-value aluminium products.
Currently, Ghana exports significant volumes of raw bauxite, but smelting creates far greater economic value.
A tonne of aluminium can generate about $6,000 in value compared with approximately $2,000 after smelting.
VALCO currently employs about 750 workers while operating below capacity.
After expansion to 300,000 tonnes annually, the smelter is expected to create thousands of direct and indirect jobs.
The modernisation programme is also expected to support Ghana’s downstream aluminium industry, which currently produces products including electrical cables, conductors, roofing sheets, pots and pans.
At present, local downstream industries use less than 7,000 tonnes of VALCO’s annual production, while Ghana imports up to 45,000 tonnes of aluminium products annually.
GIADEC believes increased production will allow Ghana to replace imports with locally manufactured aluminium products and expand into regional markets through opportunities created by the African Continental Free Trade Area (AfCFTA).
Global aluminium demand
GIADEC has argued that the timing for the VALCO transformation is favourable due to rising global demand for aluminium.
The metal is increasingly being used because of its lightweight, strength and recyclability, with growing demand from industries such as construction, automotive manufacturing and electric vehicles.
The emergence of “green metals” and demand for environmentally friendly production methods are also expected to create new opportunities for aluminium producers.
GIADEC maintains that the modernisation of VALCO is essential to achieving Ghana’s long-term ambition of building an integrated aluminium industry.
With plans to develop four bauxite mines, two refineries and a stronger downstream sector, the corporation says a modern VALCO remains critical to unlocking the full potential of Ghana’s aluminium resources.
