Ghana has reportedly cancelled a $1.2bn (12.56bn cedis) bauxite lease with local company Rocksure International, opting instead to partner with a major overseas operator to develop one of West Africa's richest bauxite deposits, reported Reuters, citing sources.
This move indicates a strategic shift for the country as it looks to tap into an estimated 900 million tonnes (mt) of bauxite reserves, the seventh-largest amount globally.
However, Ghana has faced challenges in securing consistent investment in mining and refining infrastructure.
The terminated lease covered the Nyinahin Hills in central Ghana, which contain around 376mt of bauxite.
It was part of a joint venture (JV) between Rocksure and the state-owned Ghana Integrated Aluminium Development Corporation (GIADEC) to establish a mine and alumina refinery.
Rocksure held a 70% stake in the Asante Bauxite Company JV, with GIADEC and the government owning 20% and 10%, respectively.
However, the lease was never ratified by parliament, rendering it void under a 2019 Supreme Court ruling.
One of the sources was quoted as saying: “By the Exton Cubic ruling, without ratification, you have no lease,” adding that the Ministry of Lands and Natural Resources had informed Rocksure of the termination.
GIADEC is now actively seeking new investors, with potential partners including Dubai-based Emirates Global Aluminium (EGA) and several Chinese companies.
EGA, which recently lost its mining licence in Guinea, has signed a memorandum of understanding with GIADEC to explore opportunities in Ghana.
EGA commented on its interest in Ghana, saying: “Sourcing bauxite from Ghana aligns with our objective to grow aluminium production by diversifying our supply base.”
The company stated that it is currently assessing the technical and commercial parameters of such a collaboration, but binding agreements have not been signed. Furthermore, the company did not disclose investment figures, resource estimates, or timelines.
GIADEC aims to begin extraction from the area, known as Block B, in the first quarter of next year.
Although no deals have been finalised, discussions with potential partners are at an advanced stage.
The Ghana Chamber of Mines forecasts that national bauxite output will increase to 2mt in 2025, up from a record 1.7mt this year.
In addition to these developments, Ghana is set to implement significant changes to its mining legislation, which will shorten mining licence periods and mandate direct revenue-sharing with local communities.
This represents the most extensive reform of the country’s mining laws in nearly two decades, reflecting a broader trend in West Africa to derive more value from natural resources amid rising commodity prices.
