The Ghana Integrated Aluminium Development Corporation (GIADEC) has signed an agreement with Mytilineos Energy and Metals to develop a mine at Nyinahin-Mpasaaso and construct an alumina refinery.
The Nyinahin-Mpasaaso deal will deliver Project 3A, one of four projects being executed in the Integrated Aluminium Industry IAI).
The signing ceremony occurred on Friday, January 26, 2024 in Accra, an event which was witnessed by the President, Nana Addo Dankwa Akufo-Addo, and the Minister for Lands and Natural Resources, Samuel Abu Jinapor.
President Akufo-Addo, in his address, stressed that the execution of Project 3A will put an end to decades of exporting raw bauxite from the country.
The new era, he said, would be to refine bauxite mined in Ghana to produce alumina that will feed the VALCO smelter.
“We have mined and exported bauxite in its raw form since the 1940s and have never achieved the goal of value addition or integration despite considerable efforts made by successive governments. I am proud of the progress GIADEC has made since its inception under the leadership of Mr. Michael Ansah, working to leverage on 900 million metric tonnes of bauxite and other holdings including the 100% ownership of VALCO to deliver the Integrated Aluminium Industry in Ghana.” he said.
The President commended the Board, Management and Staff of GIADEC for what he described as tremendous work at ensuring that the missing link in Ghana’s aluminium industry, an alumina refinery was finally going to be established.
He urged GIADEC to continue to drive integration of the bauxite–aluminium value chain by ensuring that all aspects of the value chain are developed.
President Akuo-Addo emphasised that the selection of a credible and leading global metallurgy and energy Company, Mytilineos S.A as GIADEC’s partner on Project 3A will pave the way for more investments from other global giants in the Integrated Aluminium Industry.
CHARGE
President Akufo-Addo charged GIADEC and its strategic partners to continue to uphold world-class environmental standards in their operations.
He attested to the “unwavering commitment” of GIADEC to world-class environmental standards, stating that it informed their choice for the selected partner for Project 3A.
He, as such, told government and the relevant state agencies to ensure the strictest adherence and commitment to all the national and global environmental and social performance standards” he added.
RIGHT INVESTMENT
Minister of Lands and Natural Resources, Mr. Samuel Abu Jinapor, in his remarks noted that government will continue to create the right investment climate for businesses to thrive.
He added that the government would provide the needed support towards the development of a fully functional Integrated Aluminium Industry in Ghana.
Chief Executive Officer of GIADEC, Mr. Michael Ansah on his part emphasised that the execution of Project 3A and all other projects under the Integrated Aluminium Industry is a game-changer and will contribute significantly to the Ghanaian economy.
Mr. Ansah said “GIADEC’s absolute requirement for Project 3A, and the approach presented by our partner, focuses on value addition, as well as the social benefits that will accrue through the creation of over 1,500 jobs over time. We shall ensure collaboration with local subcontractors, prioritise local talent and provide training programmes to align with cultural and environmental considerations”.
Mr. Ansah further stressed that Mytilineos S.A will be required to, first, undertake a Mineral Resource Estimate (MRE) to validate and define the bauxite resources before the construction of a mine and a refinery.
PARTNERSHIP
In a statement, Chief Strategy and M&A Officer at MYTILINEOS Energy & Metals, Elenos Karaindros, noted that MYTILINEOS has been a longstanding partner in Ghana; leveraging the country’s extensive experience in numerous power projects.
“We have gained a robust and unique understanding of the country’s energy sector, as well as its people and local environment.
“Today, we are pleased to embark on the next chapter of this enduring collaboration. As the operator of the European Union’s exclusive vertically integrated aluminum complex, MYTILINEOS brings comprehensive expertise across the entire value chain. More importantly, we prioritise creating value that benefits all partners involved in every project,” he stated.
