Sep 22, 2010 at 2:57pm
Ghana’s Bauxite Industry receives major boost
Ghana’s Bauxite Industry has received a major boost with the visit of President Mills to China which has seen Ghana and Bosai Minerals Group of China signing an Agreement which will enable the Chinese mining firm to invest over 1.2billion dollars for the establish of a modern Alumina Refinery Plant in Ghana.
The investment is part of a four year development plan to massively upgrade the production capacity of the Ghana Bauxite Company Limited in Awaso, in the Western region in which Bosai Minerals Groups recently acquired 80 per cent shares, with government controlling the remaining 20 per cent stake.
The MOU, which is one of the significant outcomes of the ongoing State visit to China by President John Evans Atta Mills, is expected to revamp the country’s bauxite and aluminum industry to become a major exporter with the initial annual production of 2 million tonnes of bauxite.
Apart from the investment for the refinery which is expected to be completed by 2014, Bosai intends to invest into energy production when construction takes off early next year, to assist in providing sufficient power for the plant and other income generating activities in the western region.
Since the acquisition of all the Rio-Tinto-Alcan 80 per cent shares in the Ghana Bauxite Company, Bosai has put forward an aggressive investment strategy with the objective to increase bauxite production to 1.5million tonnes by 2011, and also establish the Alumina Refinery Plant in Ghana by 2014 to make good use of the bauxite.
Although the Plant is expected to be completed in 2014, President Mills wants the project fast-tracked to aid rapid growth in Ghana as part of the better Ghana agenda.
At a meeting by President Mills with executives of the Bosai Group after the signing, President Mills expressed appreciation to the company for having confidence in the Ghanaian economy.
Lauding their commitment to expand their investment in Ghana, President Mills said Government would cooperate with them to ensure that the projects become beneficial to the company and Ghanaians.
The Managing Director of the Bosai Mineral Group, Zhilun Yuan, initialed the MOU while, the Minister of Trade and Industry, Hanna Tetteh, signed for Ghana.
Briefing President Mills of the operations of the company, Mr.
Yuan said Bosai aims to promote more direct investment in many sectors in Ghana.
At a luncheon held in honour of President Mills by the Mayor of Chongquing, one of the well developed Provinces where the headquarters of Bosai Minerals Group is located, President Mills thanked the Mayor, Huang Qifan, for encouraging companies in his Province to invest in Ghana.
That support, he said was indicative of the genuineness of the cooperation and friendship between the two countries.