Save bauxite industry

A study on bauxite mining in Ghana has recommended government to ensure by way of policy, that a bauxite refinery is established in order to maximize the huge potentials in the sector.

The study construed that while most foreign companies that have held equity stake in the bauxite sector in the past, came on the back of establishing a bauxite refinery in Ghana, they ended up exporting raw bauxite to the detriment of the local economy.

The Third World Network-Africa (TWN) commissioned the study in October, 2010 to examine the socio-economic, as well as environmental impact of bauxite mining in Ghana.

Ghana is endowed with a variety of commercial minerals, of which four most prominent ones are gold, diamond, bauxite and manganese. Mineral experts say the production of bauxite in Ghana, which currently contributes about one per cent of the total mineral export receipts for the country, has the potential to become the second most important mineral after gold, if it is given the needed attention. Also, about 90 per cent of literature in mining sector is on gold.

Bauxite deposits in Ghana can be found in Awaso (currently being mined) in the Western Region, Nyinahini and Kibi which are of commercial quantities. The study looked at the operational areas of the Ghana Bauxite Company (GBC) located at Awaso. The catchment communities of GBC are Awaso, Asempanaye, Atronsu, Subri and Chirano. 

At a meeting by the National Coalition on Mining in Accra, lead researcher, Mr. Atiemo Samson Manukure stated the history of bauxite mining in Ghana dates back to 1940 and GBC has gone through several managerial changes.

Key findings of the study he recounted are that production of bauxite has fluctuated over the years such that between 2000 and 2008, 430,000 tons to approximately 800,000.00 tons was recorded.

He said export earnings went from US$13 million to about USD 18 million, far lower than industry’s average for the same period.

GBC, he disclosed has since 2003 not paid dividends to government. “Rail haulage of bauxite has drastically reduced from about 85 per cent in 2000 to about 21% in 2008 while road haulage increased from 15 per cent to about 79 per cent within the same period,” he said.

According to him, the increased road haulage has resulted in the development of potholes in the Awaso-Kumasi highways, coupled with increased road traffic accidents involving the haulage trucks.

In order to avert further deterioration of the highway, the study recommended that government and GBC take urgent steps to rehabilitate the western corridor rail lines. This will significantly reduce the road haulage of bauxite.

Environment Programme Officer of TWN-Africa, Mr. Abdulai Darimani called for extensive debate by stakeholders on bulk minerals (bauxite and manganese) since through that policy can be influenced.