VALCO Under Review
By Daily Guide - Daily GuideBusiness/Finance | Thu, 05 Nov 2009
Hannah Tetteh, Minister of Trade and Industry
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FEASIBILITY STUDIES are underway to bring back the operations of the multi-million dollar foreign exchange earner of the country, Volta Aluminium Company (VALCO), according to the Minister for Trade and Industry, Hannah Tetteh.
Answering a question on the floor of Parliament yesterday on why VALCO was closed down and whether the Trade Ministry had plans to re-open the company, Ms. Tetteh said the current shut down, which occurred on January 3, 2009, was mainly due to the global economic meltdown, making it uneconomical for Smelter to operate.
She said the conditions that triggered the shutdown, including insufficient power supply, had since improved considerably, pointing out that aluminium prices had recovered from the low of $1,200 per metric tonnes in January this year to an average of $1,947 per metric tonnes (spot price as at October 2, 2009) and $2,010.50 per metric tonnes (3-months average price).
Ms. Tetteh gave the assurance that government would do every thing possible for the company to bounce back as it is a major foreign exchange earner for the country, adding that with a long-term metal price of $2,500 per tonne; the smelter operations alone could reap revenue of at least $500 million at full business potential.
She added that VALCO's operations would inject revenue of about $300 million, not counting the multiplier effect into Ghana's economy through VRA power purchases, income tax and Value Added Tax (VAT), among others.
“The combination of a reasonably good metal price and the improved energy outlook puts VALCO in a favourable position to restart the Smelter facility so Ghana can continue to reap the full benefits,” Ms Tetteh noted.
The Trade and Industry minister noted that VALCO declared a sizable number of its highly-skilled employees redundant, disclosing that the plant currently has 60 employees with about 75 percent being security and fire men.
“It is estimated that at least two months will be required to hire employees, train and re-train them and to re-commission the equipment before actual manufacturing operations start,” Ms. Tetteh stressed.
According to her, all major and sensitive equipment at the Plant had been properly de¬commissioned and protected so that they can be used again in the foreseeable future.
She indicated that the sensitive de-commissioned equipment were periodically serviced to preserve the integrity so “they can be easily commissioned once a decision is made to restart.”
VALCO, the Minister added, currently has in stock substantial amounts of major raw materials to get the plant running for at least 3 months before replenishments would be required.
By Awudu Mahama
Source: Daily Guide - Daily Guide
Answering a question on the floor of Parliament yesterday on why VALCO was closed down and whether the Trade Ministry had plans to re-open the company, Ms. Tetteh said the current shut down, which occurred on January 3, 2009, was mainly due to the global economic meltdown, making it uneconomical for Smelter to operate.
She said the conditions that triggered the shutdown, including insufficient power supply, had since improved considerably, pointing out that aluminium prices had recovered from the low of $1,200 per metric tonnes in January this year to an average of $1,947 per metric tonnes (spot price as at October 2, 2009) and $2,010.50 per metric tonnes (3-months average price).
Ms. Tetteh gave the assurance that government would do every thing possible for the company to bounce back as it is a major foreign exchange earner for the country, adding that with a long-term metal price of $2,500 per tonne; the smelter operations alone could reap revenue of at least $500 million at full business potential.
She added that VALCO's operations would inject revenue of about $300 million, not counting the multiplier effect into Ghana's economy through VRA power purchases, income tax and Value Added Tax (VAT), among others.
“The combination of a reasonably good metal price and the improved energy outlook puts VALCO in a favourable position to restart the Smelter facility so Ghana can continue to reap the full benefits,” Ms Tetteh noted.
The Trade and Industry minister noted that VALCO declared a sizable number of its highly-skilled employees redundant, disclosing that the plant currently has 60 employees with about 75 percent being security and fire men.
“It is estimated that at least two months will be required to hire employees, train and re-train them and to re-commission the equipment before actual manufacturing operations start,” Ms. Tetteh stressed.
According to her, all major and sensitive equipment at the Plant had been properly de¬commissioned and protected so that they can be used again in the foreseeable future.
She indicated that the sensitive de-commissioned equipment were periodically serviced to preserve the integrity so “they can be easily commissioned once a decision is made to restart.”
VALCO, the Minister added, currently has in stock substantial amounts of major raw materials to get the plant running for at least 3 months before replenishments would be required.
By Awudu Mahama
Source: Daily Guide - Daily Guide
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