Ghana plans to restart its Valco aluminium smelter next year as a prelude to building an integrated aluminium industry as world metal prices and its own energy resources improve, the government said on Wednesday.
The 200,000 tonne per year smelter with six potlines has been shut since March 2007, largely due to weak metal prices and power shortages caused by low water levels in the vast Volta hydropower dam.
Energy Ministry spokesman Edward Bawa said cabinet approved the restart of the smelter next year, initially on two potlines and ramping up later.
"Valco is presently negotiating with the three power utilities on power requirements and the relevant tariffs and we expect the company to restart immediately as soon as they have agreed on a price," he said, giving no specific date.
The smelting process for aluminium is very power-intensive. It occurs in electrolytic cells or pots, which are linked to form potlines.