General News of Thursday, 5 December 2019
The Ghana Integrated Aluminum Development Corporation (GIADEC) has announced its intention to construct about two or three refineries for refining bauxite produced in Ghana.
It has also indicated its intention to build two new smelters with a production capacity of up to 500,000 metric tonnes of aluminium each.
The refineries are expected to operate with a combined capacity of 4-6 million tonnes of alumina (refined bauxite).
Chief Executive Officer of GIADEC, Michael Ansah, made the disclosure in an engagement with the media on Wednesday, December 4, 2019, in Accra.
He said the refineries and smelters would be constructed in partnership with selected private investors.
Aside that, he said GIADEC was looking at forming up to four mining concessions in the coming years.
He said GIADEC was also considering retrofitting VALCO to increase its production capacity to 300,000 metric tonnes of aluminium.
He revealed that the expectation is that all of the interventions would lead to the creation of over 35,000 new jobs (10,000 direct and 25,000 indirect.)
Again, the CEO revealed that there will be an annual boost to Ghana’s economy of about $10 billion (roughly 15% of country’s expected GDP as at end of 2019.)
Mr. Ansah disclosed that the $10 billion boost will be achieved through mining, refining and smelting (approximately $2.3 billion) in addition to contributions from the downstream and allied industries.
It is estimated that there are 900 million tonnes of bauxite minerals across three main locations in Ghana namely Awaso (60m), Nyinahin (700m), Kyebi (160m).
According to Mr. Ansah, there is an ongoing investor engagement process where over 40 companies – both Ghanaian and international – have expressed interest in bidding to be selected to develop various aspects of the aluminum value chain.
“The process is ongoing and no new bauxite mining licenses have been awarded as at December 2019,” he said.
He assured that GIADEC would assume Government of Ghana’s full interest across the value chain in the integrated aluminum industry and will hold a minimum 30 percent stake in any new mine, refinery or smelter alongside private investors.