Chinese Firm To Take Over VALCO

There is strong indication that China?s Largest Aluminum Company (CHALCO) may take over the Volta Aluminum Company (VALCO), contrary to media reports last week that the Chinese Government would be assisting would be assisting Ghana Government to purchase the Aluminum Smelter.

CHALCO has been selected to be on the delegation by the Government of Chine and has the mandate to under preliminary due diligence on VALCO with a view to taking a decision to invest in or take over the interest of departing Kaiser Aluminum in VALCO, states a report from the Ministry of Trade, Industry and Presidential Special Initiative released the 18-man Chinese trade delegation stormed Ghana last week.

To buttress the drive for the purchase of VACLO, the ministry of trade in their proposals to the visiting delegation, suggested the establishment of processing plant to produce alumina for aluminum smelting industries.

These submissions raise questions on the $3.75million interest free agreement signed between both countries last week to assist Ghana Government purchase VALCO. Meanwhile the real value for the sale of the company has been put between $35million and $100million.

CHALCO is the largest fully integrated aluminum industry in China with a market capitalization of about $9billion and a production capacity of about six million tons of alumina and 760,000 tons of aluminum per annum.

Commentators believe that if the proposed due diligence is conducted and CHALCO is convinced, it might not have problems managing VALCO.