Ghana Bauxite Company (GBC), the sole producer of Ghana’s bauxite and the Ghana Integrated Aluminium Development Corporation (GIADEC) are now at crossroads in determining the future of Ghana’s production of bauxite.
This follows the planned exit of Bosai Minerals Group, the majority shareholder of the Ghana Bauxite Company (GBC), which commands 80 per cent stake of the Awaso bauxite mine. Therefore, this leaves the GIADEC which controls the remaining 20 per cent of the Ghana Bauxite Company to decide on buying all of the stake.
Particularly, GIADEC’s mandate regarding the future of the country’s bauxite is to ensure a planned expansion of the existing bauxite mine in Awaso as well as development of additional mines in Nyinahin-Mpasaso and Kyebi.
Meanwhile, the question that begs answers is whether GIADEC, after three years of being in operation has the capacity to take over the mine fully and keep it in a sustained growth trajectory. Otherwise, the Bosai Minerals Group is entitled to selling their stake of ownership to an interested party.
The outcome of the decision notwithstanding, the Awaso mining site where the Ghana Bauxite company mines is said to reach its lifespan in six months’ time. Thus, this presents a dicey situation for the Ghana Bauxite Company as it will require the development of another site to continue production. This activity could take up to a year with heavy capital outlay.
Consequently, the present context is situated in an era where there is increased capital discipline due to the global call against climate change. Thus, this may spark the disinterest of multinational corporations in exploiting the country’s bauxite deposits.
However, the government has indicated that it needs a two month-period to take its decision which will end on August 30, 2021. After which Bosai Mineral’s Group will eventually leave.
Bosai Group’s development of Awaso Bauxite Mine
Prior to Bosai Group’s acquisition of the stake in the Ghana Bauxite Company Limited from the mining giant, Rio Tinto, the Ghana Bauxite Company was practically running at a loss estimated at about US$11 million.
Bosai Group through exploration of the Awaso mine found that the Ghana Bauxite Company owned the world’s best deposits of high alumina and low silica bauxite ore. The amount of bauxite ore deposits reached approximately 100 million tonnes in total.
As a result, Bosai Group completely turned the company’s fortunes around, helping it realize as much as US$6 million in profits from the operations of the mine in 2020. The company employs more than 700 people who would have to find another source of livelihood after Bosai Group’s exit.
According to the 2020 report of the Ghana Chamber of Mines, the Ghana Bauxite Company recorded a 4.1 per cent improvement in its output. This indicated that the expansion of bauxite produced despite the impact of COVID-19.
The consequent increase in shipment of output increased from 1.116 million tonnes in 2019 to 1.162 million tonnes in 2020. This was principally due to an improvement in its operational activities.
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