Ghana to improve bauxite production and shipping capacity
----Interview with Issac Ofori-Poku
Executive Chairman
Ghana Bauxite Company
Ghana Bauxite Company (“GBC”) has been operating in Awaso, Ghana since 1940 and producing premium bauxite with Al2O3 52%min and SiO2 1.5%max. Over the past decade, GBC has shipped 1.2 million tons per annum on average. The company is expanding its its production capacity to its target of 2.5 million tons per annum. The bulk terminal of Takoradi Port is expected to improve its loading and shipping capacity from 70,000t to over 150,000t in the second half of this year, when the cape size vessels could berth directly
Asian Metal: Hello Issac, please introduce your company business briefly.
Issac: Ghana Bauxite Company (GBC) is currently the only bauxite producer in Ghana focusing on production of high grade bauxite with reserves of around 100 million tonnes. The government has an ownership of 20%.
Asian Metal: Africa is well-known for its rich bauxite resource. How about the bauxite reserves and quality in Ghana?
Issac: Ghana in total has the reserve of around 900 million tonnes, which occupies around 4% of global reserve. Compared with Guinean bauxite Al2O3 45-49% SiO2 3-5%, Ghana bauxite has better quality, namely 52%min of Al2O3 and 1.5%max of SiO2.
Asian Metal: When did Ghana start bauxite mining and export?
Issac: Ghana started bauxite mining and export from 1940 by a British company. In early 2010, a Chinese company acquired the ownership and started mining management. In 2022, we took over the ownership.
Asian Metal: What is the location of your bauxite mining area? How about the production capacity?
Issac: The bauxite mining area, named as Awaso, is located in western Ghana. The current bauxite production capacity is 1.5 million tonnes per year.
Asian Metal: How many tonnes did you produce in 2021? How about the present monthly output and the target for 2022?
Issac: Our output achieved around 708,000t in 2021. We are maintaining normal operation now and target at around 1.2 million tonnes in 2022 and 2.5 million tonnes in 2023. In March, we halted production for one week for equipment maintenance.
Asian Metal: For the increased shipping cost, Ghana focused on exports to Europe and US in 2021. Will you export to China in 2022?
Issac: The Chinese market has very active demand because China consumes around 75% of the global bauxite production. Therefore, I strongly wish to export bauxite to the Chinese market, which might account for over 90% of our total exports. Besides, we are negotiating with some buyers from India too.
Asian Metal: How about the logistics situation? How far from the mining area to the port? Will the government expand port loading and shipping capacity and use cape-size shipments?
Issac: Currently, we are using trucks to deliver bauxite to the ports and the government has a plan to build a railway. The mining area is around 250km away from the port. Now we load and ship bauxite by vessels of 65,000t but we expect to use the cape-size vessels of 150,000-200,000t with no auxiliary barges in the second half of the year as the government is building a new bulk terminal with new facilities.
Asian Metal: Is there any export duty in Ghana? Does the government encourage bauxite export and alumina refinery building?
Issac: No duty at the moment. Ghana government always encourages bauxite export and we need foreign investment. The export went slow over the past few years with around 1 million tonne per year to Europe and America.The export market still requires effective and efficient development. We plan to expand the export volume to 5 million tonnes per annum in the coming 2-3 years. The government has the intention to build refineries but it would take long time.
Asian Metal: What is the current export price of Ghana bauxite? What is your outlook for bauxite demand and prices in 2022?
Issac: We will refer to Asian Metal bauxite index. Some buyers from China requested USD36/dt FOB Ghana but we need to negotiate the price when cape-size vessels are ready for shipment. I saw the news that Indonesia would cut bauxite export to China. I have confidence in the demand from China and the price. I wish strongly to develop the Chinese market and we are ready to sign short-and-long term contracts.
Asian Metal: Thanks for joining the interview and wish a big success in your bauxite business.
Issac: Thanks very much for the opportunity to introduce our bauxite project!
