Nyinahin chief urges priority for Ghanaian firms in bauxite mining contracts

Nana Dr Amanpene Boateng Twum II, Chief of Nyinahin, has called for a fair chance for indigenous Ghanaian companies as the country moves forward with plans to mine its largest bauxite reserves.

A former board member of the Ghana Integrated Aluminium Development Corporation (GIADEC), Nana Dr Twum II is advocating a policy shift that prioritises local firms over foreign entities, provided they meet the required technical and financial standards.

The Chief’s remarks come amid growing scrutiny of GIADEC’s leadership. Critics and industry insiders have alleged that the corporation is favouring expatriate companies for the three main blocks of the Nyinahin deposit, potentially sidelining qualified local bidders.

“If a Ghanaian company has the capacity, it deserves the opportunity,” Nana Dr. Twum II stated. He stressed that while competence must remain the top priority, local ownership is essential for national economic growth.

He argued that foreign-dominated mining operations often lead to capital flight, where profits are transferred abroad. In contrast, indigenous firms are more likely to reinvest earnings into the Ghanaian economy, promoting local development and sustainable job creation.

To demonstrate that Ghanaian firms are capable, the Chief pointed to the Ghana Bauxite Company (GBC) in Awaso. He highlighted what he described as a sharp contrast between previous and current management.

Under former foreign operators, the mine reportedly struggled and frequently recorded losses. However, since Ofori-Poku Company Limited acquired an 80 per cent stake, with the Government of Ghana retaining 20 per cent, the company has experienced a turnaround in efficiency and profitability.

He added that local ownership has also created more employment opportunities for Ghanaian youth in operations, security, and administration, while improving relations with surrounding communities.

The Nyinahin bauxite deposit is regarded as a key asset in Ghana’s industrialisation strategy, with estimated reserves of about one billion tonnes.

Although the deposit has been known for decades, development was delayed largely because of infrastructure challenges. In 2018, GIADEC was established to spearhead the creation of an integrated aluminium industry. The deposit has since been divided into blocks to allow for phased and commercially viable development.

The debate over Gross National Product (GNP) versus Gross Domestic Product (GDP) has also featured in discussions surrounding the project.

Former President John Dramani Mahama has consistently advocated empowering citizens to own the means of production, arguing that true economic progress should be measured by the wealth retained within the country’s borders.

As GIADEC moves to finalise contracts for the Nyinahin blocks, traditional authorities and local observers say they remain watchful, insisting that promises of a “Ghanaian-first” policy must be reflected in the eventual award of contracts.