VALCO SHUTS DOWN LAST POTLINE

UNCLAS ACCRA 000835 SIPDIS DEPT PLEASE PASS OPIC E.O. 12958: N/A TAGS: EFIN ENRG GH ENIV SUBJECT: VALCO SHUTS DOWN LAST POTLINE ¶1. David Thomas, the Managing Director of Volta Aluminum Company Limited (VALCO),contacted Econoff to announce VALCO will voluntarily curtail its one operating potline effective May 5. The company took the decision, according to Thomas, in light of the current 237.80 foot level of Volta Lake. Given this level, said Thomas, the Volta River Authority (VRA), which provides hydropower from Akosombo Dam to VALCO, would probably have to curtail VALCO's power supplies in the coming weeks, using force majeure. According to Thomas, the curtailment by VALCO will provide the VRA with some flexibility in powering the rest of the electrical grid. Under its contract, according to Thomas, VALCO will reserve the right to obtain power later in the year when the lake has somewhat recovered. VALCO sees minimal impact on its current workforce and hopes to resume operations later this year. VALCO hopes this gesture is seen as a good faith effort to assist Ghana during this power crisis. YATES