Ghana's aluminium industry was initially designed to be an integrated value chain to shift from exporting raw materials to producing value-added aluminium products. However, the current industry structure lacks integration, and despite having large bauxite deposits, VALCO imports alumina for smelting. Efforts are ongoing to fully integrate bauxite mining with aluminium production, with reserves at Nyinahin and Kibi forming the foundation for this transformation.
VALCO in the Context of the Ghana Integrated Aluminium Development Corporation (GIADEC)
GIADEC was established to develop a globally competitive Integrated Aluminium Industry (IAI) in Ghana, capitalizing on the nation's rich bauxite reserves. The aim is to refine bauxite into alumina, smelt it into aluminium, and support downstream industries, including automotive and construction materials.
VALCO plays a critical role in this plan by serving as the smelter that connects upstream and downstream operations. The government is focused on leveraging local bauxite deposits to reduce the import of alumina and support local industries. Currently, downstream industries use less than 20% of VALCO’s aluminium production.
Key Actions for Downstream Industries
- Developing Industrial Parks for aluminium product manufacturing.
- Adding value to aluminium products for export.
- Promoting local consumption of aluminium.
Key Projects of the Integrated Aluminium Industry (IAI)
- Project 1: Expanding the mine at Awaso and building a refinery.
- Project 2: Developing a mine at Nyinahin-Mpasaaso and a refinery.
- Project 3: Developing a mine at Kyebi, adding a second mine at Nyinahin-Mpasaaso, and building a refinery.
- Project 4: Modernizing and expanding the VALCO Smelter to increase capacity to 300,000 metric tonnes per year.
These projects will not only increase production but also modernize VALCO’s technology, ensuring it operates efficiently and sustainably.
Aluminium Value Chain
The aluminium value chain showcases the transformation of bauxite into aluminium and how it feeds various industries such as automotive, aerospace, and construction.
