GT gone, next is $200 million for Valco

 ACCRA, Aug. 16 (Reuters) - Ghana's President John Kufuor said on Saturday that his country had received offers in excess of $200 million for a "partnership" role in the 200,000 tonne/year VALCO aluminium smelter.

Ghana bought back the final 10 percent of VALCO from Alcoa in June for $2 million, having previously paid Kaiser Aluminum $18 million for its 90 percent share in the smelter, which has been inactive since March 2007 due to power shortages.

 The West African nation plans to relaunch the industry with a new mine and alumina refinery with the aim of mining, refining and processing bauxite in country.

"As I speak with you now, VALCO is attracting international offers of over $200 million," Kufuor told a conference of the ruling New Patriotic Party in the western port city of Sekondi.

He said the proposed deal was not an outright sale but a partnership. He did not give any further details or say where the offers had come from.

"We bought it (VALCO) two years ago at $20 million, now we are selling only part of it for 200 and in addition will be earning interest that we never had in the past," Kufuor said.

The announcement follows the approval by parliament this week of a $900 million bid by Britain's Vodafone Group for a majority stake in Ghana Telecom.

The deal had been delayed by protests led by opposition politicians complaining the amount was too low. Political analysts saw this as jostling for position ahead of presidential and parliamentary elections later this year.
 

 Ghana is one of Africa's brightest economic prospects, with growth at over 6 percent. It is already the world's second largest cocoa producer and the continent's number two gold miner. It is also due to join Africa's oil-producing club with an output of 120,000 barrels a day in 2010.

Despite the economic successes, the ruling party faces a battle in the December polls to win over voters facing the double hit of high food and fuel prices. But inflation fell for the first time last month, easing to 18.3 percent.

Kufuor said that Ghana would receive the money from the Vodafone deal this week, providing some relief to its fiscal deficit, which has mounted following tax cuts in May aimed at countering the impact of rising prices.

News Source:  Reuters