Omanghana
The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has dismissed claims that the government intends to sell the Volta Aluminum Company, assuring workers that the state-owned smelter will not be disposed of under President John Dramani Mahama’s administration.
Addressing management and employees at VALCO’s premises in Tema on Thursday, July 30, 2026, the minister said Cabinet had approved only the search for a credible investor capable of providing the capital needed to revive the struggling company.
He disclosed that more than $700 million would be required to modernize the plant, replace obsolete equipment, address its financial obligations and restore operations to full capacity.
“Nobody will sell VALCO. Not under the watch of President John Mahama,” Armah-Kofi Buah said. “We are only looking for the right partner to help turn the company around.”
The minister’s visit followed a demonstration by some workers and members of the Industrial and Commercial Workers’ Union over reports that the government planned to transfer a controlling interest in VALCO to a private investor.
The protesters expressed concerns about a purported 70 per cent equity transaction, possible job losses and the future of Ghana’s ownership of the strategic aluminum company.
Armah-Kofi Buah rejected claims that VALCO had already been sold to businessman Ibrahim Mahama, the President’s brother. VALCO Board Chairman Horace Nii Ayi Ankrah also said Ibrahim Mahama had neither submitted an offer to purchase the company nor expressed interest in investing in it.
The minister explained that VALCO’s financial and operational condition had made substantial external investment necessary.
The company is burdened by more than $250 million in debts owed to power suppliers, while ageing machinery, frequent equipment failures and declining output have undermined its ability to operate sustainably.
Separate figures presented during the engagement placed VALCO’s wider legacy debt at approximately $400 million.
According to the minister, the government does not have the financial resources to fund the entire modernization program independently. It has therefore concluded that attracting an investor offers the most practical route to restoring the smelter.
VALCO is reportedly operating about 90 cells despite having the potential to run approximately 500. The government believes a complete revival could expand the company’s workforce from about 800 employees to as many as 5,000.
Armah-Kofi Buah said VALCO’s recovery was essential to Ghana’s ambition of developing an integrated aluminum industry and increasing domestic value addition.
He explained that an efficient smelter would support downstream manufacturers, reduce the country’s dependence on imported aluminum products and create more employment opportunities.
The minister assured employees that their welfare would remain central to the investor-selection process. A workers’ representative will be appointed to the committee assessing prospective investors, joining an existing representative of management.
He said the arrangement would improve transparency and ensure that employees had a voice during negotiations.
“There is no hidden agenda. We are working together to sustain VALCO and fight to revive it,” the minister told the workers.
VALCO Chief Executive Officer Dr. Robert Sambian welcomed the engagement and encouraged employees to remain calm while the government searches for an investment partner.
“Let us all have patience. Let us go through the process, bearing in mind that ultimately it is in the interest of the workers and the future of VALCO,” he said.
The company’s Professional and Management Staff Union has also supported the need for substantial investment, arguing that VALCO requires a complete rebuild rather than a limited repair program.
The group maintained that an intervention of about $60 million would be inadequate because much of the plant’s infrastructure had deteriorated beyond routine maintenance.
The government has not yet announced a preferred investor, the proposed investment structure or the ownership terms that would accompany the capital injection.
Officials said companies with credible proposals were being considered and promised continued consultations with workers as the selection process advances.
The Ministry of Lands and Natural Resources said the objective was to restore VALCO’s production production capacity, settle outstanding obligations and protect its long-term contribution to Ghana’s industrialization program.
Source: Omanghana
