Ghana is set to construct its first bauxite refinery in Nsuta, located in the Western Region. The $450 million project is being undertaken by the Ghana Manganese Company Ltd (GMC) in collaboration with its majority shareholder, Tanyun Manganese Industry Group (TMI), a Chinese company. The feasibility studies have been completed, paving the way for the first phase of the refinery project to commence before the end of the year.
Purpose of Refinery & Project Details
The Vice-President of TMI, Xu Libin, revealed that the green-field project was expected to be completed and operationalised within 12 months. He added that the decision to set up the refinery was to add value to manganese instead of exporting it in its raw form as has been over the decades.
The refinery project is estimated to create 360 new jobs, comprised of 330 production workers and 30 technical and management personnel. In relation, two power plants of 20 megawatts (MW) each would be built to support the operation of the refinery.
Mr Libin explained that the refinery had an average annual sales revenue of about $1.3 billion, excluding tax, and an annual pre-tax income of $174.4 million.
The Managing Director of Ghana Manganese added that the setting up of refineries to add value to manganese and other green minerals would contribute significantly to producing batteries that were needed for electric cars.
Government Support
The Lands and Natural Resources Minister, Samuel Abu Jinapor, described the move by GMC and TMI to set up a refinery for manganese as a boost to the government's policy on value addition. Mr Jinapor assured the company that the government would provide the required support to ensure that the project was delivered on time.
Furthermore, he called on other investors in the country’s value chain to prioritise value addition, especially to green minerals. The minister stated that with global automotive giants such as the Chinese state-owned Sinotruk, Toyota, Nissan, Volkswagen and Suzuki all setting up assembly plants in the country, green minerals such as lithium, bauxite, iron and steel would be critical to the automotive industry.
"Our objective is that as much as possible, we retain a substantial amount of value of these minerals in our country," the minister stressed.
The overarching goal of the refinery is to add value to the manganese value chain and make it more beneficial to the local economy. The world is changing, and today there is a lot of emphasis on a greener world; so we need to create a situation that will make the mineral we are producing applicable to the green agenda.
In conclusion, Ghana's decision to construct a bauxite refinery is a significant step towards adding value to its mineral resources. The project will not only create job opportunities but also contribute significantly to producing batteries required for electric cars. The government's priority on value addition will ensure that Ghana retains a substantial amount of value of these minerals in its country.
(This article is sourced from GraphicOnline and edited by Monica Kritel |Mydailyreports24
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