The Ashanti Bauxite Limited (ABL) is a joint Venture Company between the Ghana Integrated Aluminium Development Corporation (GIADEC) and a wholly owned Ghanaian Company, Rocksure International Limited.
ABL has been granted a mining lease to develop a bauxite mine with a refinery solution within Nyinahin-Mpasaaso area (Project 2).
The Mining Lease been presented to Parliament for ratification.
The mining lease includes a 1% revenue for a Community Development Fund which will be used to address infrastructure deficits and the lack of social amenities such as schools, hospitals, roads, water, electricity and support education.
The Project 2 will also employ people from the local communities. The benefits will undoubtedly significantly boost the local economy.
These benefits have generated interest within the Nyinahin-Mpasaaso communities with the chiefs and people upbeat about the realisation of the development of a bauxite mine with a refinery solution in their area after decades of expectations.
Consequently, Ankobeahene of Nyinahin, Barima Nana Amoako Ogyampa has appealed to the members of Parliament to see to the immediate ratification of the Mining Lease when the House resumes sitting.
According to him, the 1% Community Development Fund will be the first of its kind in the bauxite mining industry in Ghana.
Hitherto the amount of mining companies’ contributions for community development, through their Corporate Social Responsibility (CSR), was not mandatory.
Some community elders have proposed that the 1% Community Development Fund should be put into a trust that should be managed by ABL and the community.
This according to them will ensure that the money can be easily accessed and channelled to developmental projects.
Kofi Yeboah, a spokesperson for the Nyinahin Youth Association, has also called on Parliament to fast-track the lease ratification process.
He noted that the youth of Nyinahin-Mpasaaso are closely watching the proceedings and expect only one outcome, which is the ratification of the Mining Lease before dissolution of Parliament.
The Mining Lease was laid on the floor of Parliament on July 26, 2024, and subsequently referred to the sub-committee of Lands and Natural Resources for their recommendation to Parliament for consideration.
The next step is the ratification of the Mining Lease by Parliament.
Background
In 2019, GIADEC commenced a three-round investor engagement process aimed at identifying and selecting potential strategic investors to partner GIADEC to develop the Integrated Aluminium Industry (IAI).
At the start of the Investor Engagement Rounds, 39 companies requested for the Round 1 invitation documents in order to participate in the process. After the three Investor Engagement Rounds, Rocksure was selected as the first strategic investor.
In September 2021, GIADEC signed a Heads of Terms (HoT) agreement with Rocksure, by which Rocksure was to carry out exploration of the Block B containing hills 4,5 and 6 out of a total of 10 hills within the Nyinahin-Mpasaaso bauxite deposit and subsequently form a joint venture company with GIADEC to execute Project 2, that is to develop a bauxite mine in Block B with a refinery solution.
Rocksure was also enjoined to undertake an Environmental Baseline Study to identify all environmental and social impact issues within the area for redress and carry out a Refinery Pre-feasibility Study.
Rocksure successfully completed the exploration work and produced Mineral Resource Estimate (MRE) report in accordance with JORC Code 2012.
Rocksure has also completed Environmental Baseline Study and Refinery Pre-feasibility Study.
The MRE report, which established bauxite resources of commercial quantities, was presented to the President, H.E Nana Addo Dankwa Akufo-Addo, at the Jubilee House on 14th November, 2023.
The MRE report was also presented to the Asantehene, Otumfuo Osei Tutu II at his Manhyia Palace in Kumasi. Otumfuo blessed the partnership between Rocksure and GIADEC, and together with his sub-chiefs pledged their support for Project 2.
Over the years, GIADEC engaged the Nyinahin-Mpasaaso communities within the mining catchment area to build a partnership of trust and has established an active presence in each community, through a “19-member Committee”, with membership drawn from opinion leaders of the communities, including traditional leaders, representative groups, and civil society organisations.
The communities within the mining catchment area have been engaged to make input into the whole process of Project 2 (mining and provision of a refinery solution) to ensure the Project 2 is beneficial to the community, which therefore has given the social licence for the Project 2.
A Joint Venture (JV) company known as ‘Ashanti Bauxite Limited’ (ABL) between Rocksure and GIADEC has been incorporated to execute the Project 2, that is to develop a bauxite mine in Block B with a refinery solution.
Based on the Mine Feasibility Study presented to the Minerals Commission (Mincom), ABL has exhibited the financial, technical, and human resources requirements to undertake Project 2 efficiently.
The Government has, therefore, granted ABL a Mining Lease. The Minister of Lands and Natural Resources has laid the Mining Lease in Parliament and seeks Parliamentary ratification in accordance with Article 268(1) of the Constitution and Section 5 (4) of Act 703.
This significant advancement marks a pivotal moment in the development of an Integrated Aluminium Industry in Ghana. This is a journey that was started by the first President of Ghana, Dr. Kwame Nkrumah, with the building of the VALCO smelter in Ghana.
The aim was to mine Ghana’s bauxite, refine it into alumina and then smelt the alumina into aluminium at VALCO.
This ratification of the mining lease will be a milestone in the establishment of the Integrated Aluminium Industry (IAI) in Ghana.