An alumina refinery is to be set up in Ghana following the selection of a strategic partner to work with Ghana Integrated Aluminium Development Corporation (GIADEC) to deliver Project 3A, one of four projects executed under the Integrated Aluminium Industry (IAI) projects.
President Nana Addo Dankwa Akufo-Addo, who witnessed the signing of agreements between the two parties in Accra, said the execution of Project 3A – the development of a mine at Nyinahin-Mpasaaso and the construction of an alumina refinery – will put an end to country’s decades of exporting raw bauxite to refining bauxite to produce alumina to feed the VALCO smelter.
“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,” he stated.
The President added that, “I am proud of the progress GIADEC has made since its inception… working to leverage on 900 metric tonnes of bauxite and other holdings, including the 100% ownership of VALCO to deliver the Integrated Aluminium Industry in Ghana.”
He urged the GIADEC to continuously drive integration of the bauxite-aluminium value chain by ensuring that all aspects of the value chain are developed.
The selection of a credible and leading global metallurgy and energy Company, Mytilineos S.A as GIADEC’s partner on Project 3A, according to President Akufo-Addo, would pave the way for more investments from other global giants in the Integrated Aluminium Industry.
President Akufo-Addo tasked GIADEC and its strategic partners to continue to uphold world-class environmental standards in their operations, adding: “I am specifically aware of GIADEC’s unwavering commitment to world-class environmental standards which informed their choice for the selected partner for Project 3A.”
The President said the government and relevant state agencies must ensure the strictest adherence and commitment to all the national and global environmental and social performance standards.
Minister of Lands and Natural Resources, Mr Samuel Abu Jinapor on his part, said the government would continue to create the enabling investment climate for businesses to thrive and provide the needed support towards the development of a fully functional Integrated Aluminium Industry in Ghana.
Chief Executive Officer of GIADEC, mr Michael Ansah, said the execution of Project 3A and all other projects under the Integrated Aluminium Industry is a game-changer and will contribute significantly to the Ghanaian economy.
“GIADEC’s absolute requirement for Project 3A and the approach presented by our partner focuses on value addition, as well as the social benefits that will accrue through the creation of over 1,500 jobs over time. We shall ensure collaboration with local subcontractors, prioritise local talent and provide training programmes to align with cultural and environmental considerations.”
Mr. Ansah indicated that Mytilineos S.A would be required to, first, undertake a Mineral Resource Estimate (MRE) to validate and define the bauxite resources before the construction of a mine and a refinery.
On the downstream sector, Mr Ansah emphasised that GIADEC would continue to drive the development of a vibrant downstream sector that would take full advantage of the ever-growing need for aluminium and aluminium-related products, especially the fast-growing automobile sector in Ghana.
The Chief Strategy and M&A Officer at MYTILINEOS Energy & Metals, Mr Elenos Karaindros said Mytilineos has been a longstanding partner in Ghana, leveraging the country’s extensive experience in numerous power projects.
“We have gained a robust and unique understanding of the country’s energy sector, as well as its people and local environment. Today, we are pleased to embark on the next chapter of this enduring collaboration …”
As the operator of the European Union’s exclusive vertically integrated aluminium complex, Mytilineos brings comprehensive expertise across the entire value chain.
GIADEC is a state-owned company responsible for the development of an integrated aluminium industry in Ghana. The company’s portfolio of assets includes mining rights to all of Ghana’s 900 million tonnes of bauxite reserves, 100% shares in Valco, Ghana’s smelting company and interest in Ghana Bauxite Company Limited, a producing mine that has been operating for over 70 years.
Through strategic partnerships, GIADEC, will hold equity stakes in new mines and refineries to be established, and drive integration of the bauxite – aluminium value chain to create value.
Rex Mainoo Yeboah, ISD