By Kizito CUDJOE
Parliament has unanimously ratified a mining lease for the Ghana Bauxite Company, allowing it to mine bauxite at Awaso in the Bibiani Anhwiaso Bekwai Municipality of the Western North Region.
The decision was made following a report presented by a joint Parliamentary Committee of Mines and Energy and Lands and Forestry on June 26, 2024.
The Awaso bauxite mine is a key part of the government’s policy to build an integrated aluminium industry in the country.
The Ghana Integrated Aluminium Development Corporation (GIADEC) has identified this mine as one of its four projects to build an integrated industry. GIADEC is working with strategic investors to expand the mine and build a refinery solution to refine bauxite mined in the area.
The Ghana Bauxite Company, the country’s only bauxite producer, has been in operation for over 80 years. The company, originally owned by the British Aluminium Company Ltd, saw the government acquire a 55 percent stake in 1972. However, production decreased significantly from 407,000 tonnes in 1974 to 64,000 tonnes in 1982.
In 1997, the government divested its interest, and Alcan, a Canadian company, acquired an 80% stake. This stake was later sold to the Bosai Minerals Group in 2010. In 2022, Ofori-Poku Company Limited (OPCL), a wholly owned Ghanaian company, acquired the 80 percent stake, making the company a wholly owned Ghanaian entity for the first time in its history.
Following the expiration of its mining lease, the company was granted a new lease on May 3, 2024, covering several hills in Awaso. The Minister for Lands and Natural Resources, Samuel Abu Jinapor, laid the mining lease in Parliament for ratification earlier this month.
The Chairman of the Mines and Energy Committee, Samuel Atta Akyea, stated that the mining lease was consistent with the Constitution and relevant laws of the country.
He added that ratifying it would bring tremendous benefits to the government and promote the socio-economic development of the area.
Members of the House praised the Minister for Lands and Natural Resources for bringing the lease to the House for ratification while expressing optimism that these measures would benefit Ghanaians.
The Minister, also thanked the House and the members of the joint Committee for their support, adding that the government was fully committed to indigenizing the mining industry. He said engagements continue with all stakeholders to ensure that Ghanaians participate fully across the full value chain of the mining industry.
The ratification of the mining lease grants the company full rights to operate the mine, secure the employment of hundreds of people who depend on the mine, and contribute to the socio-economic development of the community and the country.
