The government of Ghana has reportedly terminated a $1.2 billion bauxite lease with local company Rocksure International, setting its sights on a major international partnership to exploit one of West Africa’s most lucrative bauxite deposits.
Sources close to the matter indicate that the move is a strategic pivot aimed at attracting substantial foreign investment and expertise.
The government is said to be actively pursuing a deal with a prominent overseas entity, with Dubai-based Emirates Global Aluminium (EGA) and several Chinese firms emerging as potential frontrunners.
This bold decision underscores Ghana’s renewed ambition to unlock the full potential of its vast bauxite reserves, estimated at a staggering 900 million metric tons – the seventh largest globally.
Rocksure’s Deal Crumbles Amidst Legal Loophole
Rocksure International’s lease, which encompassed the rich Nyinahin Hills in central Ghana, home to approximately 376 million tons of bauxite, was the bedrock of a joint venture with the state-owned Ghana Integrated Aluminium Development Corporation (GIADEC).
The venture, Asante Bauxite Company, saw Rocksure holding a 70% stake, while GIADEC and the government held 20% and 10% respectively.
However, the deal appears to have been on shaky legal ground from the start. Sources reveal that the lease was never ratified by Parliament, a critical omission that, according to a 2019 Supreme Court ruling (the Exton Cubic ruling), renders such agreements void.
“By the Exton Cubic ruling, without ratification, you have no lease,” one source asserted, confirming that the Ministry of Lands and Natural Resources had already informed Rocksure.
Both GIADEC and Rocksure International have declined to comment on the ongoing developments, with one source close to Rocksure claiming the firm had not received formal notification of termination, only that GIADEC was pulling out of the joint venture.
The Ministry of Lands and Natural Resources has also remained tight-lipped.
Ghana’s Bauxite Ambitions Take Flight
Despite being Africa’s leading gold producer, Ghana has lagged behind regional counterparts like Guinea, a global bauxite powerhouse, in bauxite output. This new strategic direction signals a determined effort to rectify that imbalance.
GIADEC is reportedly in advanced discussions with new investors, including EGA and various Chinese entities. EGA, which previously lost its mining license in Guinea due to delays in refinery construction, inked a Memorandum of Understanding with GIADEC in June to explore opportunities in Ghana.
“EGA has expressed interest in jointly developing bauxite opportunities in Ghana and is currently assessing the technical and commercial parameters of such
collaboration,” EGA confirmed to Reuters, though it emphasized that no binding agreement had been signed and refrained from disclosing investment figures or timelines.
A third source indicated that EGA had considered investing in Ghana around 2022 but held back to avoid jeopardizing its Guinea license.
“Sourcing bauxite from Ghana aligns with our objective to grow aluminium production by diversifying our supply base,” EGA stated, highlighting the strategic importance of Ghana’s reserves.
GIADEC is reportedly aiming for extraction and off-take from the Nyinahin area, specifically Block B, to commence in the first quarter of next year. While no deals are yet finalized, discussions are said to be in advanced stages.
“We’re looking at all options to see which one serves the interest of the nation,” a source reiterated.
The Ghana Chamber of Mines forecasts a significant jump in national bauxite output, projecting an increase to 2 million tons in 2025 from a record 1.7 million tons this year.
This move by the government could be the catalyst for Ghana to finally realize its full potential in the global bauxite market.