President Akufo-Addo, has hinted that the Ghana Integrated Aluminium Development Corporation (GIADEC), will enter into joint venture partnership with investors for the mining of the Ghana’s bauxite reserves, by end of the 2020.
Speaking at the 2020 State of the Nation Address in Parliament, the President said the move is part of government’s plans to boost the country’s industrialization agenda.
“We have decided at long last to explore our bauxite, manganese and iron ore deposits which allow us to establish an integrated bauxite and aluminum industry and iron and steel industry. The Ghana Integrated Bauxite and Aluminum Development Corporation and the Ghana Integrated Iron and Steel Corporation were established by law as the vehicles for this exploitation.”
“The process is underway for the selection this year, of joint venture partners for the development of the full value chain of these two multi-billion-dollar industries which will give a tremendous boost to Ghanaian industrialization,” the President said.
In 2017, Ghana signed an agreement with China for the development of a $10 billion bauxite venture which will include the construction of alumina refineries and railway infrastructure.
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The two countries have since agreed to a memorandum of understanding in which China will provide funding for the project to exploit the country’s 960 million metric tons of bauxite deposits.
Sinohydro deal
Last year, the Government of Ghana secured a $2 billion deal with China’s Sinohydro Corporation for the constructions of some infrastructure projects.
The agreement was engineered such that the country will use proceeds of refined bauxite sales, which will be mined by the Chinese firm, to finance the project.
Owing to this, the Government created the GIADEC, last year, to be used as a vehicle to implement this initiative.
Furthermore, the Chief Executive Officer Michael Ansah, said in an interview with Bloomberg, that the country wants to raise annual output through these round of deals to 5 million metric tons, from 1.4 million tons at the moment.
