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Ghana signs US $1.2bn deal to develop its bauxite resources

Zambia in the process of reviewing mining tax framework

Ghana has inked a US $1.2billion deal to develop its bauxite resources. The country has picked Rocksure International as a strategic partner to build a mine and refinery to develop the industry out of its untapped bauxite reserves.

The Accra-based company will own a 70% stake in the project and the state-owned Ghana Integrated Aluminium Development Corp. will have the remaining 30%. Rocksure will lead the construction of a US $200 million-bauxite mine at Nyinahin-Mpasaaso in central Ghana and a bauxite refinery of about US $1 billion, according to Michael Ansah, chief executive officer of GIADEC. The mine is expected to produce 5 million tons of bauxite a year and create more than 1,000 jobs, according to GIADEC.

Bauxite reserves

Ghana’s bauxite reserves are estimated at 900 million tons, with the potential to produce 10 million to 20 million tons a year, according to the state company founded in 2018 to create an integrated industry for the mineral. Bauxite is a reddish ore which has to be refined into alumina and then smelted to produce aluminum.

GIADEC is looking to partner private companies to develop infrastructure worth as much as US $6 billion to leverage the West African nation’s bauxite. The US $1.2 billion project is one of four for which GIADEC is seeking investors.

“The discovery of abundant reserves of bauxite, an important element in the production of aluminium, has attracted interest and highlights provisions of the regulations that will help to ensure that the exploration of Ghana’s bauxite reserves is beneficial to the people of Ghana”, said ENSafrica Ghana senior associate Ekua Newman

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