The Professional and Management Staff Union of the Volta Aluminium Company (VALCO) has stated that the state-owned aluminium smelter requires more than US$700 million to restore it to efficient and competitive operation, insisting that a proposed US$60 million rehabilitation package would only provide a short-term fix.
In a statement issued on Monday, the union said years of underinvestment had left much of VALCO’s infrastructure in a severely deteriorated state, making routine maintenance or limited rehabilitation inadequate.
According to the union, restoring the company is “not a repair exercise but a complete rebuild.”
It explained that while a US$60 million investment could help repair selected equipment and keep parts of the plant operational for a limited period, it would not modernise the ageing facility, reduce production costs or make the smelter commercially competitive.
The union further warned that spending such an amount on temporary repairs could ultimately place an even greater financial burden on taxpayers by prolonging the use of obsolete machinery without addressing the company’s long-term operational challenges.
The statement comes amid growing debate over the future of VALCO and the government’s plans to attract a strategic investor to revive the struggling aluminium producer.
The Professional and Management Staff Union, which represents assistant managers, managers and area managers, said its assessment is based on the technical expertise of employees directly responsible for operating and maintaining the plant.
It stressed that critical production systems have deteriorated beyond the point where incremental repairs can deliver sustainable results.
The union’s position differs from that of the Industrial and Commercial Workers’ Union (ICU-Ghana), which recently demonstrated against the government’s efforts to secure a strategic investor for VALCO.
ICU-Ghana has urged President John Dramani Mahama to retain the smelter as a wholly Ghanaian-owned strategic asset, arguing that private investment could reduce national control over a company central to Ghana’s industrialisation ambitions.
However, the Professional and Management Staff Union said it neither participated in nor endorsed the demonstration, adding that its members were not consulted before the protest was organised.
Instead, the union expressed support for bringing in a strategic investor, arguing that private capital has become essential for VALCO’s survival.
According to the union, any investor must provide not only funding but also modern production technology, reliable electricity, secure alumina supplies and the technical expertise needed to undertake a comprehensive reconstruction of the plant.
It noted that aluminium smelting is one of the world’s most energy-intensive industrial processes, making access to affordable and reliable electricity crucial to VALCO’s long-term viability.
The union also highlighted the importance of a stable supply of alumina, saying both dependable raw materials and competitively priced power would be essential for any successful revival of the company.
It further observed that the search for a strategic investor has dragged on for more than five years, during which the condition of the smelter has continued to worsen, increasing the amount of capital now required.
The union believes the debate should move beyond the question of ownership and instead focus on the scale of investment needed to restore VALCO.
It called for an independent technical and financial assessment of the plant to determine the true condition of its production lines, the cost of replacing obsolete equipment, future electricity requirements and the total capital needed to return the smelter to commercially viable production.
According to the union, without such an assessment, discussions about VALCO’s future risk being driven by politics rather than an accurate understanding of the company’s industrial and financial needs.
It concluded that while VALCO remains a strategic national asset, preserving its long-term economic value will require investment on a scale far greater than the US$60 million currently being discussed.
