GIADEC, RUSAL agree to build $1.5bn alumina refinery in Ghana

The Ghana Integrated Aluminium Development Corporation (GIADEC) and RUSAL, one of the world’s largest aluminium producers, have agreed to develop bauxite mining and processing operations in Ghana.

Under the agreement, RUSAL will build and jointly operate an alumina refinery with an annual production capacity of 1.2 million tonnes. The agreement was signed in Moscow during the Russia–Africa Forum.

The refinery will process bauxite from the Nyinahin deposit and use natural gas as its energy source.

The projects will be implemented through two joint ventures: Nyinahini Bauxite Ltd and Ghana Alumina Company. RUSAL will finance the projects and hold majority stakes in both companies.

The refinery is estimated to cost more than $1.5 billion, with construction expected to take approximately 36 months.

A RUSAL spokesperson said the agreement was an important step towards strengthening the company’s raw material supply.

“Ghana has some of the largest undeveloped bauxite reserves in West Africa, and we see an opportunity to establish an integrated production chain here,” the spokesperson said.

The spokesperson said the plan was to mine five million tonnes of bauxite annually and produce 1.2 million tonnes of alumina.

“RUSAL has been operating in Africa for more than 20 years, and this experience will enable us to implement the Ghanaian projects efficiently, from design through to reaching full production capacity,” the spokesperson added.

A GIADEC spokesperson said the agreement supported Ghana’s ambition to establish an integrated aluminium industry and process its bauxite locally.

“In RUSAL, a company with extensive technological expertise and many years of successful experience in Africa, we have found a partner capable of delivering on these objectives,” the spokesperson said.

The spokesperson said the Nyinahin projects would attract investment, create thousands of jobs and improve rail and port infrastructure.

They would also open up new opportunities for Ghanaian businesses.

The collaboration includes plans to jointly explore newly identified hills in the Bono, Western, Ashanti and Eastern regions. The exercise will determine whether the bauxite reserves in those areas are commercially viable.

Ghanaian participation is also expected to extend beyond its equity stakes in the joint ventures.

The projects are expected to create jobs during construction and operations, provide opportunities for local contractors and suppliers, and support the development of transport infrastructure.

These activities are expected to stimulate economic activity in surrounding communities and the wider economy.

The Ghana Integrated Aluminium Development Corporation (GIADEC) was established under the Ghana Integrated Aluminium Development Corporation Act, 2018 (Act 976).

Its mandate is to develop and promote a globally competitive integrated aluminium industry in Ghana.

The government considers the industry a strategic pillar for economic transformation and accelerated growth. It is expected to support industrialisation, create jobs and increase export revenues.

GIADEC aims to harness Ghana’s bauxite reserves and unlock value across the aluminium production chain.

This includes refining bauxite into alumina, smelting alumina into aluminium and expanding downstream industries that add further value to the economy.