Brewing tensions arise as strategic investor for Ghana Bauxite Company exits

Ghana Seeks Joint Venture Partners For Integrated Bauxite Dev%u2019t.png File photo of a bauxite mine

Tue, 17 Aug 2021 Source: www.ghanaweb.com

• A strategic investor at the Ghana Bauxite Company has announced its exit from a mine in Ghana

• The Bosai Mineral Group has made a decision to also sell 80% of its stake in the Ghana Bauxite Company Limited

• The firm's exit is due to the non-renewal of a mining lease with the GBCL

A strategic investor at the Ghana Bauxite Company Limited (GBCL) has announced its decision to pull from its operation at Awaso in the Bibiani-Anhwiaso-Bekwai District of the Western North Region, the Daily Graphic has reported.

This comes after the investor, Bosai Mineral Group from China, has formally written to government over its decision to sell 80 percent of its stake in the company and exit.

According to the report, the Chinese firm made its decision to exit Ghana as a result of the non-renewal of its mining lease with the GBCL which is expected to expire in January 2022.

The move which is likely to impact the employment of close to 700 workers of the GBCL has brought on some anxiety and fears of job security with the future of the company hanging in the balance.

It is said that many people in Awasa and adjoining communities have over a period depended on the operation strategy at the mine.

Already, the GBC mine at Awaso is estimated to reach its lifespan in the next six months with management of the company required to develop a nearby site.

But the establishment of a new mine is said to take up to a year to develop while some workers of the company have urged government to swiftly find a new strategic investor of the mine.

Other workers on the hand are, however, calling on government to commence the process for them to be paid their severance packages once the company enters into the development stage with a new investor.

Prior to the exit of the Bosai Mineral Group, the GBC was making an annual loss of around US$11 million.

The Chinese investor upon taking over the mine has increased production from 600,000 tonnes to around 1.4 million tonnes.

It has also, through diverse ways, boosted the fortunes of company with huge profit recorded of US$4 million recorded in 2019 and US$ 6 million recorded in 2020.

Source: www.ghanaweb.com
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