|
| Valco Deal To Pay Off |
10/30/2005 |
|
Valco Deal To Pay Off
Partners in the new Volta Aluminium Company (VALCO) are to invest $3.7 billion in the operations of the company.
Dr Charles Mensa,the Executive Chairman of VALCO, said in an interview that the investment was expected to generate about $1 billion in foreign exchange annually from the aluminium smelter and refinery and indicated that the investment was likely to change the economic fortunes of the country.
The two partners — the Ghana government and ALCOA, the aluminium giant — are to spread the investment package over a period between three and four years.
Dr Mensa explained that the refinery would generate about $600 million a year, while the smelter would also bring in $400 million.
The foreign exchange earnings will rank with revenue from cocoa and will boost the economy and as well raise the Gross Domestic Product (GDP) by two or three per cent.
Dr Mensa said when the project took shape and “we play our cards well, then we will run faster than poverty”.
Such is the investment that it is likely to bring the 10-per cent equity of ALCOA at par with that of the Ghana government.
Under the agreement,the company is expected to double the output of the aluminium smelter from 220,000 metric tonnes to about 500,000 metric tonnes at the cost of $700 million.
In addition,VALCO will also spend $1 billion for the setting up of a 1,000 megawatts thermal power plant at Tema through the West African Gas Pipeline Project.
The plant will lessen the dependence of VALCO on the hydro dam at Akosombo and that will be good for the country’s energy requirement.
Besides,$2 billion will be provided towards the mining of bauxite and the construction of an aluminium refinery.
Dr Mensa said soil testing and drilling had begun at Kyebi,while architectural drawings for the refinery,and the site for aluminium refinery would be ready by next June for work to begin.
“Engineering test had also been done already,he said.
The project will offer job to 3,500 artisans such as welders and masons while the mine will also provide about 2,500 job avenues.
Dr Mensa said the project would conform to environmental demands because VALCO was aware that the environment was a sensitive issue to the Okyenhene,Osagyefuo Amoatia Ofori Panin, and the company would not overlook that critical stand.
The VALCO deal with AlCOA began in earnest in October last year.Dr Mensa,who considered the project as the proverbial mustard seed,said it was good that President J.A. Kufuor decided that Ghana should own the project to bring to fruition what Osagyefo Dr Kwame Nkrumah dreamt about.
Dr Nkrumah had the vision to set up an integrated aluminium industry.Unfortunately,Kaiser Aluminium did not live up to expectation.
When the integrated project becomes a reality it will offer many job and business opportunities downstream. The fabrication of aluminium for many industrial and aviation parts will not be discounted.
It is believed that President Kufuor,now in the United States,will meet officials of ALCOA.
Source :Daily Graphic
|
|
|
|
|
|
|
|
|
