Vale claims that the Ghana Aluminium Project is conducting a feasibility study but is not interested in restarting VALCO

November 17 comprehensive report: Vale said recently that it will carry out a feasibility study on bauxite and alumina refinery projects in the Ghana region of West Africa, and stated that the study has been commissioned by GALCO, a Ghanaian aluminum producer.


However, Vale said it was "not interested" in restarting the VALCO smelter, and VALCO has stopped production due to a power shortage since March 2007.


In a brief statement, Vale stated that after signing a memorandum of understanding with VALCO on the feasibility study of the bauxite and alumina refinery project, VALCO had expressed the hope that Vale would participate in the VALCO restart project.


It is reported that Vale is not interested in the restart of VALCO. Its main target is on bauxite and refinery construction projects.


Ghana’s Ministry of Trade stated that in a memorandum to the Parliament, Vale and Hydro had stated that they purchased 70% of VALCO’s shares on August 8th and invested US$4.7 billion in the Ghanaian aluminum industry.


The VALCO aluminum plant has an annual capacity of 200,000 metric tons. The VALCO aluminum plant is purchased by the Ghanaian government from Kaiser Aluminum and the Ghanaian government purchases 10% and 90% of the shares from Alcoa and Caesars aluminum, respectively, for US$2 million and US$18 million. The plant has stopped production due to a power shortage since March 2007. VALCO was established in the 1960s.