The Volta Aluminium Company Limited (VALCO) is positioning itself to move beyond primary aluminium production with the introduction of a continuous casting and rolling mill capable of producing aluminium rods for the domestic electrical cable industry and potentially the international market.
The development is expected to strengthen Ghana’s efforts to retain more value from its aluminium resources by supplying locally manufactured intermediate products to downstream industries while reducing their reliance on imported aluminium inputs.
From Primary Producer to Value-Added Manufacturer
The development was disclosed by VALCO’s Finance Director, Sepenu Agbetsise, at the Ministry of Lands and Natural Resources’ mid-year performance review and training programme held at the Marriott Hotel in Accra.
Mr Agbetsise said the new production line had already undergone industrial testing with two local cable manufacturers—Nexans Kablemetal and Reroy Cables—with the companies providing satisfactory feedback on the samples supplied. He said the development represented an important shift in VALCO’s traditional role as a producer of primary aluminium to a more integrated operation capable of supplying higher-value products to manufacturers.
“Hitherto, these companies would have had to import the rod and process it into the various cables that power our homes. Now, VALCO is in a position to supply those directly,” Mr Agbetsise said.
Reducing Import Dependence
The new mill could have significant implications for Ghana’s cable and manufacturing industries, which rely substantially on imported aluminium inputs. By producing aluminium rods locally, VALCO could provide manufacturers with a domestic source of an important intermediate product, potentially shortening supply chains and reducing exposure to international freight costs and supply disruptions.
The initiative also fits into the broader national ambition to develop an integrated aluminium industry in which Ghana moves beyond exporting or processing primary materials to producing finished and semi-finished aluminium products for both domestic and export markets.
Eye on the Export Market
The company is also looking beyond the domestic market as it seeks to establish the quality and commercial viability of its products internationally. As of June 2026, about 25 metric tonnes of H11 Electrical Conductor (EC) grade aluminium rods had been shipped to Europe for testing, with results expected by the end of August.
Successful testing and market acceptance could open another avenue for VALCO to supply value-added aluminium products to international customers, strengthening Ghana’s position in the global aluminium market.
The VALCO Story: From Nkrumah’s Vision to National Asset
VALCO was established in 1964 as part of Dr Kwame Nkrumah’s vision to use power from the Akosombo Dam to drive an integrated aluminium industry in Ghana. The smelter, located in Tema, was designed to operate more than 200 pots, with a production capacity of 200,000 tonnes per annum. Construction began in 1964, and commercial production started in March 1967. The company initially produced 120,000 metric tonnes annually, with expansions in 1970 and 1974 increasing capacity to 200,000 metric tonnes.
VALCO was established as a collaborative venture between the Government of Ghana and Kaiser Aluminium and Chemical Corporation and Reynolds Metals Corporation of the United States. In 2004, facing financial difficulties, Kaiser prompted the Government of Ghana to acquire full ownership. By 2008, the Government of Ghana had acquired 100% of the shares in VALCO after Kaiser Aluminium exited.
Since then, the plant has struggled with inconsistent and expensive power supply, ageing rectifiers and carbon plant equipment, and a lack of capital for retooling. Since 2011, VALCO has operated at reduced capacity, producing approximately 40,000 metric tonnes per year. The number of active cells declined from 127 in 2025 to about 90 as of August 2026.
Despite these challenges, VALCO recorded a revenue of over $120 million as of December 2025, its highest performance in recent years. The company currently employs 800 workers.
Alumina Remains Key Challenge
Despite the progress on downstream production, VALCO continues to face a major structural challenge: Ghana does not yet have a domestic alumina refinery. The company therefore relies on imported alumina as the key raw material for its smelting operations.
Mr Agbetsise said the dependence on imported alumina placed pressure on the company’s working capital because of the time between placing orders, making payments and receiving the material. The arrangement also exposes VALCO to substantial logistics and financing costs. The company effectively bears freight costs when bringing alumina into Ghana and incurs another freight cost when exporting aluminium products.
“If we have alumina just at our backyard, we don’t have to pay ahead of time,” Mr Agbetsise said. He explained that local alumina production could reduce both financing requirements and operating costs, improving the competitiveness of the Ghanaian smelting industry.
GIADEC and the Integrated Aluminium Industry Vision
The development of an alumina refinery has consequently become a critical component of Ghana’s ambition to establish an integrated aluminium industry.
The Ghana Integrated Aluminium Development Corporation (GIADEC) is mandated to support development of the value chain, spanning bauxite mining, alumina refining, aluminium smelting and value-added manufacturing. Established under Act 976, GIADEC’s core mandate is to develop and promote an integrated aluminium value chain from bauxite mining through alumina refining to aluminium smelting and downstream manufacturing under a single, coordinated national strategy.
GIADEC’s strategy is anchored on Ghana’s significant bauxite reserves, located mainly at Awaso, Nyinahin, and Kyebi. These deposits collectively hold an estimated 920 million metric tonnes of bauxite resources.
In January 2026, GIADEC, Metalloid Investment, and GIBDLC executed a US$60 million facility to boost mining activities in Nyinahin, focusing on the exploration and commercialisation of the country’s bauxite reserves. The facility will support the establishment of a large-scale bauxite mine at Nyinahin—a project central to GIADEC’s broader vision of transforming Ghana from a raw mineral exporter into a country capable of supporting the entire aluminium value chain.
Modernisation and Expansion Plans
The government is actively pursuing the modernisation and expansion of VALCO. On August 21, 2026, the Ministry of Lands and Natural Resources inaugurated the government’s Negotiations Team for the modernisation of VALCO. The team has been tasked with leading discussions and negotiating definitive terms of engagement with a strategic partner or investor for the retooling, expansion and long-term sustainability of VALCO, as part of Ghana’s Integrated Aluminium Industry agenda.
The team comprises representatives from the Ministry of Lands and Natural Resources, GIADEC, the Ministry of Finance, the Attorney-General’s Department and the Chief Executive Officer of VALCO. The Ministry has assured workers, stakeholders and the general public that the government will not privatise VALCO outright but will bring on board a credible strategic partner to modernise the plant and secure jobs.
In November 2025, an investor selection committee was inaugurated by Lands Minister Emmanuel Armah-Kofi Buah to evaluate proposals received by GIADEC. The committee submitted its options analysis report on January 7, 2026. The evaluation focused on five pillars: financial capacity, technical competence, sustainable power solutions, environmental/social stewardship, and robust governance to protect shareholder interests.
The government has estimated that approximately US$2.3 billion will be required to modernise and revamp operations at VALCO. The plan to expand operations could create over 5,000 direct and 25,000 indirect jobs once fully implemented. The modernization and retrofit of VALCO and the construction of an alumina refinery are designated as “Projects 3 & 4” under GIADEC’s strategic plan.
A Transformative Moment for Ghana’s Industrialisation
VALCO’s new rolling mill provides an important link in that downstream development by creating an avenue for aluminium produced in Ghana to be converted into products required by other industries. The company has identified construction, automotive, packaging and other manufacturing industries as potential markets where locally produced aluminium products could substitute imported inputs.
The Continuous Cast Rod (CCR) project, as the initiative is called, marks the start of VALCO’s downstream value-addition chain. The CCR initiative is expected to catalyse significant industrial activity, supporting an estimated 25,000+ direct and indirect jobs across manufacturing, logistics, and allied services.
The emerging production capacity could therefore provide a double benefit: creating a market for locally produced aluminium while giving Ghanaian manufacturers access to locally sourced intermediate materials.
With the initial response from domestic cable manufacturers described as satisfactory and overseas testing under way, the new rolling mill could mark an important step in VALCO’s transition from a traditional smelter into a more diversified producer of value-added aluminium products.
It also reinforces the broader policy objective of ensuring that Ghana does not merely possess the raw materials and infrastructure for an aluminium industry but captures a greater share of the economic value generated along the entire chain—from bauxite in the ground to finished products for global markets.
