VALCO returns to profitability after $13m loss

November 4, 2026

2 minutes read

THE Volta Aluminium Company Limited (VALCO) has recorded a significant financial turnaround, posting positive Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of $1.3 million for the nine months ending September 2026, compared with a loss of $13.08 million during the same period in 2025.

The Chief Executive Officer (CEO) of VALCO, Dr Robert Makila Sambian, disclosed this during the Ministry of Lands and Natural Resources’ Progress Series in Accra yesterday, where he presented an update on the company’s performance, achievements and future development plans.

He said revenue for the first nine months of 2026 stood at $103.85 million, representing a 13 per cent increase over the $91.78 million recorded during the corresponding period in 2025, despite challenges with production volumes.

Dr Sambian said VALCO produced 29,596 metric tonnes of aluminium during the period, against a planned target of 39,813 metric tonnes, representing a 25.7 per cent shortfall. The output also reflected a 13.6 per cent decline from the 34,254 metric tonnes produced during the same period last year.

He attributed the production setback to an incident on June 29, 2026, which resulted in a power grid system collapse and transformer failure, causing a total electrolytic power outage lasting approximately seven hours and 20 minutes.

Although the plant survived the prolonged outage, several operating cells were affected, reducing the number of stable cells. Management has since initiated measures to stabilise operations, increase active cells and restore production capacity.

As part of efforts to improve operational efficiency, VALCO has adopted a new business model, transitioning from renting critical mobile equipment to a structured pay-to-own arrangement.

This has facilitated the acquisition of 16 lift trucks, two payloaders, a dump truck, melting furnaces, a centrifuge system and natural gas piping infrastructure.

On employment, Dr Sambian said the company had increased its workforce from 785 employees in December 2025 to 848 as of October 2026.

The figure is expected to rise to approximately 1,500 when all five potlines are fully restored, with the expansion projected to generate more than 6,000 indirect jobs.

He further disclosed that VALCO had secured the necessary inputs, including 5,000 metric tonnes of imported anodes, to support an increase in operating cells to 150.

In line with the government’s industrialisation and value-addition agenda, the company has also installed its first-ever value-addition production line, an Electrical Grade Rod Mill, which is producing aluminium rods for domestic and European markets.

Looking ahead, Dr Sambian outlined a five-to-ten-year vision to transform VALCO into a globally competitive, fully integrated aluminium company, supported by domestic bauxite mining, alumina refining, reliable energy supply and increased value-added production.

The short-term recovery plan targets the restoration of all 200 active cells by 2027, with an annual production capacity of 80,000 metric tonnes.

Other initiatives include joint ventures, scrap recycling, conversion from heavy fuel oil to natural gas, modern emissions scrubbers and comprehensive plant rehabilitation.

The long-term ambition is to produce 1.5 million metric tonnes of primary aluminium annually by 2035. Dr Sambian said Cabinet had approved the engagement of a strategic investor to accelerate the smelter’s turnaround and expansion, with discussions and negotiations underway.

VALCO is a private company limited by shares, with all 4,285,720 issued shares held by the Ghana Integrated Aluminium Development Corporation (GIADEC) on behalf of the Government of Ghana.

The Ministry’s Progress Series provides a platform for showcasing achievements, ongoing projects and future plans of its agencies while keeping the public informed about government interventions in the natural resources sector.

BY KINGSLEY ASARE

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