Valco to trim capacity after government cuts power

The Volta River Authority in Ghana has notified Kaiser Aluminum Corp.'s majority-owned Volta Aluminum Co. Ltd. (Valco) that it has to operate at a reduced power for 2003

The power cut-back means Valco will have to operate at one-and-one-half potlines instead of its current power allocation that supports three potlines.

In March, Valco was operating four of its five potlines, but closed down one of its potlines after the government of Ghana reduced the power allocation to the smelter facility. Valco had also operated four potlines in 2000 and 2001.

Valco is against the current and the previous power reductions and plans to seek declaratory relief and monetary damages.

Electric power is provided to the facility by the Volta River Authority's Akosombo hydroelectric dam.

Pots are electrolytic cells arranged in lines which reduce alumina, an intermediate raw material derived from bauxite, to aluminum metal. Each potline generates an annual production capacity of about 40,000 metric tons.

Kaiser is a Houston-based aluminum producer.