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