The Volta Aluminium Company Limited (VALCO) is set to announce a strategic partner to help it modernise its operations and make it a world class facility by the end of the year, the Board Chairman, Dr Henry Benyah has announced.
According to him, the decision to announce the strategic investor followed the approval by the Cabinet of Ghana for VALCO and the Ghana Integrated Aluminium Development Corporation (GIADEC), the entity holding VALCO's shares on behalf of the Government of Ghana, to go to market to identify and engage a Strategic Partner towards the retro-fit of the Smelter.
The retro-fit he explained was to bring VALCO to world-class standard in terms of technology, operating efficiencies and costs, profitability, among other benefits.
Dr Benyah, announced this at the Company's Annual General Meeting (AGM) in Accra yesterday.
He explained that Transaction Advisors had been engaged "to manage the process of the search and selection of a Strategic Partner with the requisite technical capacity to deploy the most competitive smelter technology, backed by the needed investments and strategic global linkages in consideration for an agreed equity stake in a restructured VALCO."
The Board Chair said VALCO over the last two years had experienced relatively stable operations and this was buttressed by the results for 2021 and 2022.
"In comparison to performance over the past decade, VALCO recorded its best-ever performance in 2022, second only to the results of 2021, posting an adjusted EBITDA positive return of USD5.39 million," he emphasised.
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On his part, the Chief Executive Officer of VALCO, Mr Dan Acheampong said he was pleased to note that the company had come a long way from where it faced huge existential challenges where the future of the smelter was threatened.
He said a relatively stable and productive business, in readiness for the expected massive take off with the sourcing of a strategic investor had been witnessed over the period.
Mr Dan Acheampong said notwithstanding improvements in performance in the last three years, the company was not out of the woods yet.
Despite this, he said the team was committed to working in line with its Principle of "continuous improvement," leaving no stone unturned and had been building upon the improved performances to bolster confidence in the company's ability to become a world class smelter.
"The company hopes to leverage its successes in the last three (3) years regarding operational stability to lay a firm foundation for 2023 and beyond. This is in line with the objectives outlined in its five (5) year Strategic/Recovery Plan (2020-2024) which places emphasis on maintaining operational stability as it transitions to the "Retrofitted VALCO" to assure a sustainable turnaround.
