Ghana has cancelled a $1.2 billion bauxite lease with local company Rocksure International and is now seeking a partnership with a major international player to develop one of West Africa’s richest bauxite deposits, according to three sources familiar with the matter and reported by Reuters.
Two of the sources said Ghana is considering companies such as Dubai-based Emirates Global Aluminium (EGA) or a Chinese firm as potential new partners.
The move marks a shift in strategy for Ghana, which holds about 900 million metric tons of bauxite, the seventh-largest reserve globally, but has struggled to attract long-term investment in mining and refining infrastructure.
Rocksure’s lease covered the Nyinahin Hills in central Ghana, an area estimated to hold around 376 million tons of bauxite, which is the raw material used in aluminium production.
The lease had formed the foundation of a joint venture between Rocksure and the state-owned Ghana Integrated Aluminium Development Corporation (GIADEC) to build a bauxite mine and alumina refinery.
Rocksure held 70% of the Asante Bauxite Company joint venture, while GIADEC and the Ghanaian government held 20% and 10% respectively.
However, the lease was never ratified by parliament, making it void under a 2019 Supreme Court ruling.
“By the Exton Cubic ruling, without ratification, you have no lease,” one of the sources said, noting that the Ministry of Lands and Natural Resources had communicated this to Rocksure.
GIADEC declined to comment, citing ongoing negotiations.
The Ministry of Lands and Natural Resources did not respond to requests for comment. Rocksure also declined to comment.
One source mentioned that Rocksure had not been formally notified of the lease termination, only that GIADEC was withdrawing from the joint venture.
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Despite being Africa’s top gold producer, Ghana trails behind neighboring Guinea in bauxite production.
GIADEC is now actively seeking new investors to take over the project, with EGA and several Chinese companies among those being considered, according to one source within GIADEC.
EGA, which previously lost its mining license in Guinea due to delays in building a refinery, signed 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,” the company said in an email response to Reuters.
The company clarified that no binding deal has been signed and did not disclose any figures related to potential investment, resource estimates, or timelines.
A third source said EGA had looked into investing in Ghana as far back as 2022 but pulled back at the time to avoid upsetting Guinea.
“They didn’t want Guinea to feel they were shifting focus to Ghana,” the source explained.
EGA added, “Sourcing bauxite from Ghana aligns with our objective to grow aluminium production by diversifying our supply base.”
GIADEC aims to begin extraction and off-take from the Nyinahin Hills area, specifically known as Block B, in the first quarter of next year.
Although no formal agreements have been finalized, discussions with potential international partners are said to be at an advanced stage.
“We’re looking at all options to see which one serves the interest of the nation,” one source said.
According to the Ghana Chamber of Mines, the country’s bauxite output is expected to rise to 2 million tons in 2025, up from a record 1.7 million tons in 2024.
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Image Credit: TRT Global
