The essential decisions to establish a bauxite refinery

In line with the desire to process part of its raw materials before export and to ensure high generation of income for the country as well as make the country independent of other economies, the Government of Ghana has decided to establish a bauxite refinery, the first of its kind, to process raw bauxite into aluminium products.

In total, it is estimated that the country has about 900million metric tonnes of bauxite minerals across three main locations in Ghana. These are Awaso in the Western Region, Nyinahin in the Ashanti Region and Kibi in the Eastern Region. Awaso has about 60 million tonnes, Nyinahin 700 million tonnes and Kibi 160 million tonnes.

STRATEGIC PARTNER

To be able to make this a reality, the Ghana Integrated Aluminium Development Corporation (GIADEC) has signed an agreement with a strategic partner, Rocksure International which is a wholly owned Ghanaian company. Being a Ghanaian owned company, Rocksure International operates across Ghana and West African sub region. It has expertise in mining, drilling, loading, and haulage services.

The good news about this is that unlike the previous practice where strategic investors were foreigners, this one is wholly Ghanaian owned going to show that Ghanaians today, under the leadership of President Akufo-Addo, is poised to become truly economically independent as far as bauxite mining and refinery are concerned.

The project would require a huge investment amount of six (6) billion dollars. This will make it one of the most ambitious projects ever undertaken in this country since the country became independent.

AMBITIOUS AND AUDACIOUS PROGRAMME

Not only is this programme ambitious, but it is also audacious, an indication that with certainty and boldness in our minds and planning, we would be able to go far and move the country to a higher pedestal of development. The amount of investment is to come from the private sector and once again it goes to show that with proper planning and coordination, the public sector can collaborate with the private sector to achieve the ultimate for the country.

Until this time, most of the raw materials in the country were exported in their raw form and this brings in a tiny amount of income which is used to purchase highly priced manufactured imports from developed countries. As a result of this practice, income earned by Ghana and other developing countries have always proved inadequate to cover our imports. This accounts for the poverty and poor standard of living experienced in many African countries including Ghana.

The setting up of the bauxite refinery to manufacture Aluminium products in the country is, therefore, a wake and clarion call to change our paradigm of development to be able to compete favourably with the rest of the world. With this arrangement, the vision of the president for Ghana-Beyond-Aid can become a reality. It will also show other African countries that they need to follow Ghana’s example and make their economic independence real.

COMPETITIVE BIDDING

The selection of the strategic partner, Rocksure International, did not come by chance. It was the result of rigorous series of processes involving about 39 companies which actively participated in the processes in form of competitive bidding. At the end of it all, Rocksure International was selected based on strategic competence, vision, and readiness to ensure the attainment of quality results for the bauxite refinery. The selection of the strategic investors covered a period of three (3) months in 2019 which goes to show that the selected company is fit for the job.

In view of the economic significance of bauxite, this project is likely to bring about the needed results and thereby bring about the desired economic impact for the country. bauxite is valuable because it is used in a lot of industries. An example is the chemical industry. It helps in refractory, abrasive cement, steel, and petrol industry among others. Similarly, it is used in the manufacturing of Aluminium chemicals. Again, in refractory it is used as a raw material for making several products.

ECONOMIC IMPORTANCE OF BAUXITE

In view of the economic importance of bauxite, the refinery for bauxite reflects the determination of the leadership of the country to generate adequate income and establish Ghana as an example for the rest of Africa to follow. This is because we cannot continuously depend on raw materials for export, knowing that it is only through an Integrated Aluminium Industry (IAI) that the country can advance economically to where it wants to be, rubbing shoulder to shoulder with the rest of active business players in the world.

It is common knowledge that raw minerals have been extracted or mined from prehistoric times. Indeed, the histories of civilisation, as well as industrial growth and advancement, have been linked with the ability of man to harness and use the materials available to him.

As a result of knowledge and technological innovation, there has been a continuous evolution and expansion in the minerals we consume and use in producing goods and services. Countries that can make use of technology and undertake safe mining have helped in sustainable development while those that are unable to do so live in abject poverty during plenty.

APPROPRIATE TECHNOLOGY

It is well known that countries that use appropriate technology to mine their minerals can generate more revenue and make life better for their citizens. Many countries in Africa are sitting on great wealth but are wallowing in poverty because of their inability to tap them and maximise their use in a safe and sustainable manner.

The point must be made that adequate supplies of minerals are very essential for manufacturing and construction. They are also essential for energy requirements as well as the agricultural sector for which reason we need to embark on sustainable development of a modern economy. Overall, the use of renewable energy sources, recycled materials and industrial by-products can be maximised to meet the needs of generations in countries while efforts are made to reduce waste.

Generally, minerals are essential for economic development in many ways. They help in construction to develop, maintain, and enhance our built environment and transport infrastructure. They also help in manufacturing to produce a wide range of industrial and consumer goods.

What is more, they help in transportation and electricity generation for use in the home, industry, commerce, and business transactions. Again, they are useful in agriculture and help to improve the productivity of the soil if the mining is carried out responsibly for sustainable development.

GHANA INTEGRATED ALUMINIUM DEVELOPMENT CORPORATION

The Ghana Integrated Aluminium Development Corporation has an enormous task that ought to be comprehensively and effectively implemented for the realisation of the development goals of our dear nation. It has been stated that there will be a project at Nyinahin-Mpasaaso and this will lead to the production of five (5) million tonnes of bauxite per annum with the capacity to create over one thousand (1000) direct jobs. Indirect jobs such as food and water services as well as clothing and textile products will even be far higher and that it is anticipated that mining operations, after preliminary works and studies is likely to commence within the next 24 hours.

A small country like the United Kingdom and many others have adequate supply of minerals which they utilise for their respective economic development. They can maximise its use through refinery activities, and, therefore, generally, they are richer than African countries.

Ghana’s decision to setup a refinery for its bauxite deposits is, therefore, a step in the right direction. When rigidly implemented to the letter, the country will soon move up and join the wealthy nations in Africa and the world.

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 Pradmat2013@gmail.com (0553318911)

BY DR. AMPONSAH-BEDIAKO