Russian aluminum producer Rusal has agreed with Ghana’s state-owned Ghana Integrated Aluminium Development Corporation (GIADEC) to develop a major bauxite mine and build an alumina refinery, deepening Moscow’s industrial footprint in West Africa.
The agreement was signed in Moscow during the Russia-Africa Forum on October 29. The partnership will begin with development of the Nyinahin bauxite deposit in Ghana’s Ashanti Region, according to Rusal’s official statement.
Rusal said the area earmarked for mining contains estimated resources of more than 100 million tons of bauxite, with planned output of up to 5 million tons annually.
The mine will be built and operated as part of the first phase. The second phase foresees a natural gas-powered alumina refinery with a capacity of 1.2 million tons per year, processing bauxite from Nyinahin.
Alumina is the key intermediate material used to make aluminum, so the project could allow Ghana to retain more value from its mineral resources rather than exporting raw ore. Ghana had cancelled a previous $1.2 billion lease agreement with local firm Rocksure International while seeking a foreign partner for Nyinahin.
The projects will be carried out through two joint ventures, Nyinahini Bauxite and Ghana Alumina Company. Rusal will hold majority stakes in both, while Ghana’s side will retain a minority interest that includes a legally protected, non-dilutable 10% stake. The ventures will receive rights to explore for, mine and process bauxite.
GIADEC chief executive Reindorf Twumasi Ankrah said the deal supports Ghana’s goal of building a fully integrated aluminum industry capable of processing bauxite domestically, and added that the projects are expected to attract investment, create thousands of jobs, involve local contractors and suppliers, and improve rail and port infrastructure.
For Rusal, Ghana offers a potential new source of bauxite and alumina, while for Ghana, it represents a step toward industrial processing of one of the country’s most important mineral endowments. Ghana holds about 900 million tons of bauxite reserves, among the largest globally.
