Parliament unanimously endorsed the mining lease granted to the Ghana Bauxite Company for bauxite extraction at Awaso in the Bibiani Anhwiaso Bekwai Municipality of the Western North Region.
This decision followed the presentation of a joint report by the Parliamentary Committees on Mines and Energy and Lands and Forestry on Wednesday, 26th June, 2024.
The Awaso bauxite mine is integral to the government’s strategy to develop a comprehensive aluminium industry in the nation. The Ghana Integrated Aluminium Development Corporation (GIADEC), tasked with advancing this industry, has identified the mine as one of its pivotal projects.
GIADEC is collaborating with strategic investors to expand the mine and establish a refinery to process bauxite extracted from the region.
The Ghana Bauxite Company, operational for over eighty (80) years, stands as the sole producer of bauxite in the country, having navigated various phases since its inception in the 1940s.
Initially owned by the British Aluminium Company Ltd, the government acquired a fifty-five percent (55%) stake in 1972 under the Mining Operations (Government Participation) Decree, 1972 (NRCD 132), aligning with the National Redemption Council’s policy of asserting control over key economic sectors.
Subsequently, challenges emerged, with production plummeting from four hundred and seven thousand tonnes (407,000t) in 1974 to a mere sixty-four thousand tonnes (64,000t) by 1982.
In response, the government opted to divest its stake, leading to Alcan, a Canadian firm, acquiring an eighty percent (80%) share in 1997, leaving the remaining twenty percent (20%) in government hands.
Rio Tinto, a British-Australian multinational, later acquired Alcan’s interest before transferring it to the Bosai Minerals Group in 2010.
However, in 2022, Ofori-Poku Company Limited (OPCL), a wholly Ghanaian-owned entity, acquired the eighty-percent stake previously held by Bosai, marking the first time in its history that the company became entirely Ghanaian-owned.
Established in 1990, OPCL boasts extensive experience in the mining sector, providing various mining services such as haulage, transportation, and climate change solutions.
Following the expiration of its previous lease, the company secured a new lease on 3rd May, 2024, encompassing the Kanayerebo, Subri, Nchiniso, Afumba, and Bokahirri Hills in Awaso.
Earlier this month, Samuel A. Jinapor, MP, Minister for Lands and Natural Resources, presented the lease to Parliament for ratification under Article 268(1) of the 1992 Constitution, which was subsequently referred to the Joint Committee on Mines and Energy and Lands and Forestry.
Presenting the committee’s findings to Parliament, Samuel Atta Akyea, Chairman of the Mines and Energy Committee, affirmed the constitutional requirement for parliamentary oversight in managing and utilizing the nation’s natural resources.
He underscored the lease’s alignment with constitutional provisions and national laws, emphasizing its potential to deliver substantial benefits to the government and foster socio-economic progress in the area.
The committee expressed satisfaction with the company’s financial and technical capabilities to fulfill its obligations under the lease, thus endorsing its ratification.
Members of Parliament commended the Minister for Lands and Natural Resources for bringing the lease for ratification, noting past lapses in adhering to the constitutional requirement for parliamentary ratification of mining leases since 1992.
They applauded the government for securing Ghanaian investment in this critical mine, ensuring its complete ownership by Ghanaians. Members also praised the inclusion of plans for a refinery in the agreement, aimed at adding value to the mined minerals.
They expressed optimism that these measures would benefit all Ghanaians.
In response, Minister Samuel A. Jinapor thanked Parliament and the committee members for their diligence and unanimous support in ratifying the mining lease.
He affirmed the government’s commitment to promoting Ghanaian participation across the entire mining value chain, emphasizing its goal of indigenizing the mining sector.
The ratification of the mining lease grants the company full operational rights, securing jobs for hundreds dependent on the mine and contributing to the socio-economic advancement of the community and the nation at large.