The Chinese state-owned firm Sinohydro which deal with Ghana for bauxite mining brings out heavily condemnation from global environmentalists, as they warned that bauxite mining in the country’s crucial forests region would façade environmental risks.

The West African nation, Ghana, signed bauxite for an infrastructure deal with China, which would authorize the Chinese firm to inject about $2 billion in Ghana’s infrastructure development.

Ghana would utilize the money earned from the sale of bauxite in exchange to repay the loans.

As a guarantee, Ghana agreed to establish an offshore deposit account for receiving revenues generated from the sale of bauxite. As of now, $646 million of the loan funds has been approved for disbursement.

As per the report of the North Carolina, USA based Duke University, it has stated clear warning that the cost of the proposed aluminium industry projects linked to the Sinohydro agreement would outweigh the potential benefits.

The top producer of international scholars, the report also highlighted: "If Ghana fails to comply with its collateral or repayment obligations; Sinohydro is entitled to prepayment of outstanding loan balances and may seize the full balance of the escrow account.”

The aluminium industry of Ghana does not deliver an adequate amount of revenues to match up to its loan repayment and collateral obligations.

However to overcome this, the govt. of Ghana developed a state-owned enterprise known as the Ghana Integrated Aluminium Development Corporation (GIADEC) to develop aluminium industry projects and related infrastructure.

GIADEC plans to build up to three new bauxite mines, three new alumina refineries, one new aluminium smelter and will hold a minimum of 30% stake in all the new projects alongside private investors.

The vital allegation that environmentalists have raised is the plan to permit bauxite mining in Atewa Forest - a biodiversity forest preserve and which is the main source of three major rivers that provide water for five million people.

Already, three major global manufacturing companies - BMW Group, Tetra Pak and Schuco International very recently declared that they would source aluminium which is produced from the bauxite of Ghana's Atewa Forest due to the environmental risks associated with mining the forest.