ICU renews opposition to proposed private ownership of VALCO

The Industrial and Commercial Workers’ Union (ICU-Ghana) has stepped up its opposition to the proposed transfer of a controlling stake in the Volta Aluminium Company Limited (VALCO) to a private investor, demanding an immediate halt to negotiations until outstanding concerns about the transaction are resolved.

The Union said it was not opposed to efforts to modernise, retool and expand VALCO, but rejected any arrangement that would result in the loss of State control over what it considers a strategic national asset.

The position follows the inauguration of a negotiating team by the Ministry of Lands and Natural Resources on August 21, 2026, to negotiate definitive terms with a prospective strategic investor for the retooling and expansion of VALCO.

The ICU said assurances by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, that the proposed arrangement would not amount to “outright privatisation” needed to be reconciled with information previously presented to the Union regarding the proposed transfer of 70 percent of VALCO’s equity.

“Our concern is with the proposed method of achieving this objective, particularly the intention to cede a substantial portion of the State’s equity in VALCO to a private investor,” the Union said in a statement signed by its General Secretary, Morgan Ayawine.

It argued that transferring a controlling interest in a wholly State-owned company to a private investor would, in substance, constitute a major transfer of ownership and control, irrespective of the terminology used to describe the transaction.

“In our considered view, ceding a controlling interest in a wholly State-owned company to a private investor would, in substance, result in a significant transfer of ownership and control,” the ICU said.

The Union stressed that its opposition did not begin with the inauguration of the negotiating team.

It said its National Executive Council formally resolved on July 31, 2026, to oppose the proposed transfer of a 70 percent equity stake in VALCO.

The ICU also pointed to a peaceful demonstration it organised in Tema on July 27, during which it petitioned President John Dramani Mahama to ensure that VALCO remained under full State ownership.

“It is therefore unacceptable to the Union that negotiations on the proposed transaction should continue without Government first addressing the concerns contained in the Union’s petition to the President,” it said.

The ICU also raised questions about the process through which the prospective investor was identified, citing what it described as contradictions in official accounts.

According to the Union, it understands that the Lands and Natural Resources Minister informed workers that no investor had yet been selected. However, it said the Ghana Integrated Aluminium Development Corporation (GIADEC) inaugurated an investor-selection committee in November 2025 and announced on January 8, 2026 that investors had been secured.

The Union further referred to a July 30, 2026 letter from Press Metal Aluminium Holdings Berhad, which it identified as the principal technical and smelting partner of the Arch Holdings consortium.

The ICU said Press Metal indicated that its only submission before the January announcement was a Letter of Intent dated September 29, 2025, while representatives of the company and Vitol did not physically visit VALCO until April 2026.

“This raises fundamental questions that require clear and transparent answers,” the Union said.

It questioned how the consortium could have been considered suitable or selected when its principal technical partner had allegedly not yet physically inspected the VALCO facility.

The Union further expressed concern over the reported withdrawal of Press Metal from the proposed transaction, saying the development raised questions about the current composition and technical and financial capacity of the prospective investor.

“If Press Metal was to provide critical technical and smelting expertise to the proposed consortium, its withdrawal raises further questions regarding the present composition, technical capacity and financial credibility of the prospective strategic investor,” the ICU said.

The Union is therefore demanding that the Ministry disclose who currently constitutes the prospective strategic investor and the basis on which Government intends to proceed with the negotiations.

The ICU also called for independent scrutiny of the proposed transaction, saying its preliminary inquiries into the Arch Holdings Consortium had identified issues that required further clarification and verification.

It said the circumstances surrounding the consortium’s composition, the withdrawal of a key partner and the continued advancement of the transaction warranted full disclosure.

“These circumstances warrant full disclosure and independent scrutiny to assure workers and the Ghanaian public that the process is being conducted transparently, competitively and in the national interest,” the Union said.

While acknowledging VALCO’s operational challenges, the ICU maintained that modernisation did not necessarily require the transfer of controlling ownership to a private investor.

It proposed reliable and competitively priced power, State-backed recapitalisation, appropriate debt financing, management and governance reforms, as well as measurable performance targets as possible alternatives for restoring the company.

The Union is consequently calling for an immediate suspension of the current process and comprehensive legal, financial, technical, institutional and stakeholder scrutiny of any proposed arrangement.

“No transaction involving such an important national asset should be concluded behind closed doors or without adequate consultation with the workers and other relevant stakeholders,” it said.

The ICU has also appealed to President Mahama to direct the Lands and Natural Resources Minister to halt all processes leading to the proposed transfer of VALCO’s ownership and control to private interests until the transaction is comprehensively reviewed and Government formally responds to the Union’s petition.

“VALCO is a strategic national asset,” the ICU said, insisting that its future must be determined by what best serves Ghana’s national interest, workers, industry and future generations.