Business News of Tue, 4 Sep 201825
US$2bn bauxite deal finalised in China
Government has concluded the US$2billion bauxite deal with Sinohydro Group Limited after a meeting between President Nana Akufo Addo and China’s President Xi Jinping in Beijing at the weekend.
The barter trade deal will involve alumina processed from bauxite deposits in the country for a facility of US$2billion from Sinohydro Group Limited for infrastructural development.
Sinohydro Group Limited is expected to provide US$2billion of infrastructure including roads, bridges, interchanges, hospitals, housing andrural electrification in exchange for Ghana’s refined bauxite.
Speaking to Ghanaians living in China during his visit, President Akufo Addo said: “I finally concluded the barter trade deal agreement with President Xi during our meeting”.
He said this is a new source of funding that will be used to boost Ghana’s infrastructure in the area of roads, hospitals, schools among others.
He added that it was agreed as part of the deal that the bauxite will not be exported in its raw state but will be refined in the country before export.
He said Ghana wants to chart a new path of adding value to its natural resources through industrialization, so the era when the country exported its raw natural resources is over.
“We will insist that the raw materials are processed before they are exported out of the country,” he said.
Fight against ‘galamsey’ continues
He assured the Ghanaians in Diaspora that his government is still committed to the fight against illegal mining, as it is unacceptable to see the country’s environment and water-bodies polluted by the activities of illegal miners.
He said he is aware some of these activities involve Chinese nationals, and so in his meeting with President Xi he raised this issue and was satisfied with the response he got from the Chinese president.
“I am very happy with the manner in which President Xi responded. He recognised that Ghanaian laws have every right to deal with people who engage in illegal activities.”
According to President Akufo-Addo, Ghana recognises the effort in China’s contribution to Ghana’s infrastructural development – saying the law will protect every Chinese who is doing a legitimate business in Ghana.
“We welcome Chinese investment into our economy; China is the largest trading partner of Ghana, and it has made significant contributions to Ghana’s infrastructural development. So, we have no problem with Chinese investment in Ghana; but we do have a problem with those who engage in illegal mining.”