Ghana: New Bauxite Deal Enhances Value Addition

The Ghana Integrated Aluminium Development Corporation (GIADEC) has entered into a partnership agreement with Mytilineos Energy and Metals to collaborate on the construction of an alumina refinery in the country.

The partnership specifically relates to Project 3A, which is one of the four projects falling under the Integrated Aluminium Industry (IAI) at Nyinahin-Mpasaaso in the Ashanti Region. According to the agreement, the Greek company, Mytilineos, will take the lead in developing a bauxite mine and managing the construction of an advanced alumina refinery.

This agreement marks a departure from the traditional practice of exporting raw bauxite, signifying a shift away from decades of raw exports from Ghana. The new focus will be on local refining of mined bauxite, with the produced alumina serving as a vital feedstock for the Volta Aluminium Company (VALCO) smelter.

During the agreement-signing ceremony, President Nana Akufo-Addo emphasized that the construction of the Integrated Aluminium Industry (IAI) in Ghana would have a transformative impact on the local economy and holds significant potential for wealth creation.

“We have mined and exported bauxite in its raw form since the 1940s, and have never achieved the goal of value addition or integration despite considerable efforts made by successive governments,” the president said. 

In light of this, President Nana Akufo-Addo commended the strides made by GIADEC since its establishment, particularly in harnessing 900 million metric tonnes of bauxite and other assets, including the complete takeover of VALCO.

Additionally, he urged the board and management of GIADEC to persist in promoting the integration of bauxite-aluminum value chains, ensuring comprehensive development across all aspects.

To sustain the gains made so far, Mr. Akufo-Addo charged GIADEC and its partners to continue upholding world-class environmental standards in their operations.

“I am specifically aware of GIADEC’s unwavering commitment to world-class environmental standards, which informed their choice for the Project 3A selected partner. As such, government and relevant state agencies must ensure the strictest adherence and commitment to all national and global environmental and social performance standards,” he stated.