Parliament has unanimously ratified the Mining Lease granted by the Government to Ghana Bauxite Company, allowing it to mine bauxite at Awaso in the Bibiani Anhwiaso Bekwai Municipality of the Western North Region.
This decision followed the presentation of a report by a joint Parliamentary Committee of Mines and Energy and Lands and Forestry on Wednesday, June 26th, 2024.
The Awaso bauxite mine is crucial to the Government’s policy of developing an integrated aluminium industry in Ghana. The Ghana Integrated Aluminium Development Corporation (GIADEC) has identified the Awaso mine as one of its four key projects. GIADEC is collaborating with strategic investors to expand the mine and establish a refinery to process the bauxite.
The Ghana Bauxite Company, established over 80 years ago, is currently the only bauxite producer in the country. Initially owned by the British Aluminium Company Ltd, the Government acquired a 55% stake in 1972. The company faced challenges over the years, with production dropping significantly by 1982. The Government later divested its interest, and Alcan, a Canadian company, acquired an 80% stake in 1997. Rio Tinto later acquired Alcan’s stake before selling it to the Bosai Minerals Group in 2010.
In 2022, Ofori-Poku Company Limited (OPCL), a wholly Ghanaian-owned company, acquired the 80% stake previously held by Bosai, marking the first time in 80 years that the company was wholly Ghanaian-owned. OPCL, incorporated in 1990, has extensive experience in mining services, including haulage, transport, and climate change solutions.
Following the expiration of its previous lease, OPCL was granted a new lease on May 3rd, 2024, covering the Kanayerebo, Subri, Nchiniso, Afumba, and Bokahirri Hills in Awaso. Earlier this month, the Minister for Lands and Natural Resources, Samuel A. Jinapor, presented the mining lease to Parliament for ratification under Article 268(1) of the 1992 Constitution.
Samuel Atta Akyea, Chairman of the Mines and Energy Committee, presented the Committee’s report to Parliament, noting that the request for ratification aligns with constitutional provisions ensuring parliamentary oversight over natural resource management.
He affirmed that the lease was consistent with relevant laws and recommended its ratification, citing potential benefits for the Government and socio-economic development in the area.
Members of Parliament commended the Minister for Lands and Natural Resources for adhering to constitutional requirements for parliamentary oversight of mining leases. They praised the Government for securing Ghanaian investment in the strategic mine and including plans for a refinery to add value to mined minerals, expressing optimism that these measures would benefit Ghanaians.
Minister Samuel A. Jinapor thanked Parliament and the joint Committee for their thoroughness and unanimous support in ratifying the mining lease.
He affirmed the Government’s commitment to nationalizing the mining industry and ensuring full Ghanaian participation across its value chain.
The ratification of the mining lease grants the company full operational rights, secures employment for hundreds of workers dependent on the mine, and contributes to socio-economic development in the community and the nation as a whole.
