Ghana is set to benefit from a new alumina refinery following the successful selection of a strategic partner that will work with the Ghana Integrated Aluminium Development Corporation (GIADEC) to deliver 3A, one of four projects being executed under the Integrated Aluminium Industry (IAI) framework.
President Akufo-Addo who witnessed the signing of the agreements between the two parties at a brief event held in Accra on Friday (26 January 2024), stressed that the execution of Project 3A – which involves the development of a mine at Nyinahin-Mpasaaso and the construction of an alumina refinery – will put an end to decades of exporting raw bauxite from the country and make possible the refining of 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,” President Akufo-Addo said.
“I am proud of the progress GIADEC has made since its inception under the leadership of [Michael Ansah], working to leverage on 900 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 chief missing link in Ghana’s aluminium industry – an alumina refinery – will finally be established.
He urged GIADEC to continue to drive integration of the bauxite/aluminium value chain by ensuring that all aspects of the chain are developed.
President Akufo-Addo emphasised that the selection of a credible, leading global metallurgy and energy company, Mytilineos SA, as GIADEC’s partner on Project 3A will pave the way for further investment by other global giants in the Integrated Aluminium Industry.
President Akufo-Addo charged GIADEC and its strategic partners to continue to uphold world-class environmental standards in their operations.
“I am specifically aware of GIADEC’s unwavering commitment to world-class environmental standards which informed their choice for the selected partner for Project 3A. As such, government and the relevant state agencies must ensure the strictest adherence and commitment to all the national and global environmental and social performance standards,” the president said.
The Minister of Lands and Natural Resources, Samuel Abu Jinapor, assured guests that the government will continue to create the right investment climate for businesses to thrive and provide the needed support for the development of a fully functional Integrated Aluminium Industry in Ghana.
The chief executive officer of GIADEC, Michael Ansah, 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.
“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,” Ansah said
He further stressed that Mytilineos SA will be required, first, to undertake a mineral resource estimate (MRE) to validate and define the bauxite resources before the construction of a mine and a refinery.
Ansah also said that GIADEC will continue to drive the development of a vibrant downstream sector that will take full advantage of the ever-growing need for aluminium and aluminium-related products, especially through the fast-growing automobile sector in Ghana.
In a statement, the chief strategy and mergers and acquisitions (M&A) officer at Mytilineos Energy & Metals, Elenos Karaindros, said that Mytilineos has been a long-standing partner in Ghana, leveraging the country’s extensive experience in 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,” Karaindros said.
“As the operator of the European Union’s exclusive vertically integrated aluminium 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 said.
Karaindros further declared that Mytilineos is committed to the highest global standards of ESG excellence. “Our objective is to deliver sustained benefits for the Ghanaian economy and society,” he said. “For Mytilineos, this project aligns fully with our strategy to fortify the security of the bauxite-to-aluminium supply chain and expand our global footprint in metal and mining.
“We are enthusiastic about the journey ahead and eagerly anticipate working closely with our partners on this landmark project.”
Also present at the signing ceremony were Members of Parliament for the proposed mining areas and representatives of government institutions, board members of GIADEC, traditional leaders from communities where the mines and refineries will be situated and other stakeholders.
About GIADEC
GIADEC is a state-owned company responsible for the development of an integrated aluminium industry in Ghana.
The company’s portfolio of assets includes mining rights to all of Ghana’s 900 million tonnes of bauxite reserves, 100% shares in VALCO – Ghana’s smelting company and interest in Ghana Bauxite Company Ltd, a producing mine that has been operating for over 70 years.
Through strategic partnerships, GIADEC will hold equity stakes in new mines and refineries to be established and drive integration of the bauxite-aluminium chain to create value.
GIADEC is guided by its core values of integrity, respect and excellence in execution. The company believes in shared prosperity, sustainability and adherence to responsible environmental and operational practices.
About Mytilineos
Founded in Greece in 1990, Mytilineos has evolved into an industrial and energy multinational company, publicly listed on the Athens Stock Exchange. With an extensive presence across five continents and operations spanning 40 countries in Africa, the Americas, Asia, Australia and Europe, Mytilineos has established itself firmly as a prominent player in the global market.
The company boasts a consolidated turnover of €6.306 billion, showcasing robust financial performance and an EBITDA of €823 million, signifying its financial stability and growth trajectory. With a workforce of 6,144 direct and indirect employees, Mytilineos is committed to sustainable growth, guided by the highest environmental, social and governance (ESG) performance indicators, aiming to reduce carbon dioxide (CO₂) emissions by at least 30% by 2030 and achieve carbon-neutral business operations by 2050.
As a responsible corporate citizen, Mytilineos takes pride in its extensive social and environmental impact, reflected in its €3.058 billion total social footprint, €120 million environmental expenditure and €3.9 million social contributions.
Mytilineos’s metallurgy sector holds a leading position as the only vertically integrated bauxite, alumina and aluminium producer in the European Union. It boasts world-class bauxite mining facilities, alumina refineries and aluminium casthouses. In 2023, the company achieved a production capacity of roughly 240 kilotonnes of aluminium and roughly 870 kilotonnes of alumina, setting the standard for excellence in metallurgical production.
The partner is proud to have reached an impressive 26% in recycled aluminium production, showcasing its commitment to sustainable and environmentally friendly manufacturing processes.
