The Volta Aluminium Company Limited (VALCO) is positioning itself to move beyond primary aluminium production with the introduction of a continuous casting and rolling mill capable of producing aluminium rods for the domestic electrical cable industry and potentially the international market.

The development is expected to strengthen Ghana’s efforts to retain more value from its aluminium resources by supplying locally manufactured intermediate products to downstream industries while reducing their reliance on imported aluminium inputs.

The development was disclosed by VALCO’s Finance Director, Sepenu Agbetsise, at the Ministry of Lands and Natural Resources’ mid-year performance review and training programme held at the Marriott Hotel in Accra.

Mr Agbetsise said the new production line had already undergone industrial testing with two local cable manufacturers, Nexans Kablemetal and Reroy Cables, with the companies providing satisfactory feedback on the samples supplied.

He said the development represented an important shift in VALCO’s traditional role as a producer of primary aluminium to a more integrated operation capable of supplying higher-value products to manufacturers.

“Hitherto, these companies would have had to import the rod and process it into the various cables that power our homes. Now, VALCO is in a position to supply those directly,” Mr Agbetsise said.

Reducing import dependence

The new mill could have significant implications for Ghana’s cable and manufacturing industries, which rely substantially on imported aluminium inputs.

By producing aluminium rods locally, VALCO could provide manufacturers with a domestic source of an important intermediate product, potentially shortening supply chains and reducing exposure to international freight costs and supply disruptions.

The initiative also fits into the broader national ambition to develop an integrated aluminium industry in which Ghana moves beyond exporting or processing primary materials to producing finished and semi-finished aluminium products for both domestic and export markets.

The Ghana Integrated Aluminium Development Corporation (GIADEC) is mandated to support development of the value chain, spanning bauxite mining, alumina refining, aluminium smelting and value-added manufacturing.

VALCO’s new rolling mill provides an important link in that downstream development by creating an avenue for aluminium produced in Ghana to be converted into products required by other industries.

Eye on the export market

The company is also looking beyond the domestic market as it seeks to establish the quality and commercial viability of its products internationally.

As of June 2026, about 25 metric tonnes of H11 Electrical Conductor (EC) grade aluminium rods had been shipped to Europe for testing.

The results were expected by the end of August, according to the information presented at the review.

Successful testing and market acceptance could open another avenue for VALCO to supply value-added aluminium products to international customers, strengthening Ghana’s position in the global aluminium market.

Alumina remains key challenge

Despite the progress on downstream production, VALCO continues to face a major structural challenge: Ghana does not yet have a domestic alumina refinery.

The company therefore relies on imported alumina as the key raw material for its smelting operations.

Mr Agbetsise said the dependence on imported alumina placed pressure on the company’s working capital because of the time between placing orders, making payments and receiving the material.

The arrangement also exposes VALCO to substantial logistics and financing costs.

The company effectively bears freight costs when bringing alumina into Ghana and incurs another freight cost when exporting aluminium products.

A domestic alumina refinery, therefore, could substantially shorten the supply chain, reduce inventory-in-transit requirements and ease financing and logistics costs.

“If we have alumina just at our backyard, we don’t have to pay ahead of time,” Mr Agbetsise said.

He explained that local alumina production could reduce both financing requirements and operating costs, improving the competitiveness of the Ghanaian smelting industry.

Completing the value chain

The development of an alumina refinery has consequently become a critical component of Ghana’s ambition to establish an integrated aluminium industry.

The government has been pursuing investors for the establishment of the country’s first alumina refinery, with the refinery, VALCO’s smelting operations and downstream manufacturing viewed as interconnected components of the proposed value chain.

For VALCO, the rolling mill provides an opportunity to begin capturing greater value from aluminium even as efforts continue to address the alumina supply gap.

The company has identified sectors including construction, automotive, packaging and other manufacturing industries as potential markets where locally produced aluminium products could substitute imported inputs.

The emerging production capacity could therefore provide a double benefit: creating a market for locally produced aluminium while giving Ghanaian manufacturers access to locally sourced intermediate materials.

With the initial response from domestic cable manufacturers described as satisfactory and overseas testing under way, the new rolling mill could mark an important step in VALCO’s transition from a traditional smelter into a more diversified producer of value-added aluminium products.

It also reinforces the broader policy objective of ensuring that Ghana does not merely possess the raw materials and infrastructure for an aluminium industry but captures a greater share of the economic value generated along the entire chain.

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