Ghana could lose over $350 billion of revenue from the bauxite industry: VALCO

Ghana could lose over $350 billion of revenue from the bauxite industry if measures are not put in place to establish a refinery and integrate the various players in the precious minerals’ value chain.

This is according to the Volta Aluminum Company (VALCO).

A conservative estimate of Ghana’s bauxite is reported to be about 700 million tons.

VALCO which currently exports most of its output is calling for the establishment of a bauxite refinery in Ghana which will form a part of the Aluminum integration project.

Deputy CEO of VALCO, Daniel Acheampong speaking on the Citi Breakfast show said, establishing the refinery is our best bet to sustaining the industry.

“Ghana has bauxite resources at Kibi and Nyinahin that if mined and exported, will fetch Ghana about $17.5 billion, but currently Ghana’s bauxite that is mined Ayawaso goes for $25 (per tonne) on the world market. Because we are not the people mining as a country, the royalties we get is just peanut- maybe just about $2 or $3 (per tonne) or thereabout.”

In his analysis, Mr. Acheampong said Ghana would be better off the country focused mining bauxite itself.

“But if Ghana decided to just concentrate on just mining the bauxite only, we will get about $17.5 billion. I think we have grown and so we will want to add value so that the refinery will not have to import bauxite. So if we had a refinery in this country and mined the bauxite, this is going to give us about $122 milion.”

He pointed out that if the smelter is taken off-take it, “then that alone is going to give this country about $350 billion.”