Industrial and Commercial Workers’ Union (ICU), Ghana, has registered its fierce opposition to alleged government intentions to privatize the Volta Aluminium Company Limited (VALCO).
Describing the smelter as a non-negotiable national treasure, the Union warned that any move to offload the state’s interest to private entities would be a strategic blunder with long-term economic repercussions.
The ICU’s stance comes amidst growing concerns over the sovereignty of Ghana’s extractive assets, particularly as the nation seeks to bolster its industrial base through the Ghana Integrated Aluminium Development Corporation (GIADEC) framework.
“ICU-Ghana, as a key and indispensable stakeholder, is vehemently opposed to any sale, concession, or arrangement that would deprive Ghana of sole ownership of VALCO. We therefore demand that all those orchestrating the sale of VALCO immediately reconsider their actions and allow the Company to remain the bonafide property of the people of Ghana. Posterity will not forgive those who mortgage the nation’s future for short-term or personal interests.”
Mr. Morgan Ayawine
The Union’s agitation is fueled by what it identifies as “persistent attempts” by specific individuals to orchestrate a sale that would prioritize immediate private gain over the collective interest of the Ghanaian populace.
Beyond the smelter itself, the ICU expressed alarm over reports that portions of VALCO’s reserved lands are being targeted for alienation to private developers.
General Secretary, Mr. Morgan Ayawine emphasized that these lands are indispensable for the future expansion of the company’s operations and must remain held in trust for the state.
The Union further argued that despite the company’s historical operational hurdles, recent management-led stabilization efforts prove its viability as a wholly state-owned enterprise.
VALCO as the Anchor of Ghana’s Extractive Vision
In the broader context of Ghana’s extractive sector, VALCO is not merely a production facility; it is the “industrial backbone” of the country’s Integrated Aluminium Industry (IAI).
Strategically, the smelter is designed to serve as the critical link between upstream bauxite mining and downstream manufacturing.
Without a functioning, state-controlled smelter, Ghana’s ambition to add value to its estimated 700 million metric tons of bauxite deposits potentially worth over $1.05 trillion would be severely compromised.
Currently, under the GIADEC Project, VALCO is undergoing a modernization drive aimed at retrofitting its technology and expanding its smelting capacity from 50,000 metric tonnes to a projected 300,000 metric tonnes annually.
This transformation is essential for the production of “Green Aluminium,” which would position Ghana competitively in a global market increasingly focused on sustainable sourcing.
Retaining VALCO as a national asset ensures that the benefits of this value-addition such as the creation of an estimated 2.3 million jobs remain within the domestic economy rather than being repatriated by foreign private shareholders.
The Perils of Privatization and Policy Reversal
The potential privatization of VALCO carries grave risks, chief among them being the loss of sovereign control over energy consumption and pricing. Historically, VALCO has been the largest consumer of power from the Akosombo Dam.
Privatization could lead to a scenario where a private owner demands subsidized power rates to maximize profit, essentially forcing the Ghanaian taxpayer to subsidize a private corporation’s utility bills.
This “American Island” model, which characterized the company’s early decades under Kaiser Aluminium, often saw the state bearing the brunt of low power tariffs while reaping minimal direct fiscal benefits.
Furthermore, the extractive industry experts warn that selling VALCO would effectively “decapitate” the GIADEC initiative.
If the smelting stage is privatized, the state loses its ability to mandate local content and ensure that the downstream sector fabricating automotive parts, construction materials, and electronics gets priority access to primary aluminium.
Such a move would re-relegate Ghana to a “post-colonial extraction-based economy,” where raw materials are exported at low prices while finished goods are imported at a premium.
Protecting National Assets for Future Generations
The ICU-Ghana’s call for a total halt to the sale is a demand for “efficiency-led pricing” and technocratic discipline rather than a change in ownership.
The Union asserts that the management’s recent initiatives to stabilize operations prove that the “sleeping giant” is finally awakening. Alienating VALCO’s land, which the Union described as a “grave betrayal of public trust,” would permanently stunt the company’s growth potential.
To maintain its industrial sovereignty, Ghana must resist the pressure to sell its strategic anchors for short-term fiscal relief.
As the Extractive sector continues to evolve, the consensus among labor and industry watchers is clear: VALCO must remain the “bonafide property of the people” to ensure that the nation’s mineral wealth translates into genuine industrial transformation.
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