Ghana bauxite development to keep booming
----Interview with George Ayittey
General Manager
Ghana Bauxite Company Limited (GBC)
- Ghana Bauxite Company Limited (GBC) has operated in Awaso, in the western north region of Ghana, West Africa, since the 1940s. GBC is known for its production of high-quality bauxite, which typically contains Al2O3 51%min and SiO2 2%max. GBC's operations are founded on a strong commitment to environmental stewardship, community welfare, and employee well-being. GBC is committed to responsible governance and sustainable development, not just mineral extraction, but also creation of a sustainable future.
- Asian Metal: Kindly please introduce your company business briefly.
- George Ayittey: GBC stands as a beacon of sustainability in the extraction of high-quality bauxite. Harnessing the wealth of abundant bauxite deposits, GBC has been meeting global demands for over fifty years. Located in the picturesque western north region of Ghana, GBC's Awaso mine is a testament to the company's commitment to ethical practices. With an impressive reserve of 100 million metric tons and ongoing development of two additional bauxite-rich hills estimated to contain 90 million metric tons, GBC has consistently delivered an average of 1.2 million metric tons of bauxite annually over the last ten years.
- Asian Metal: Over the past two years, bauxite producers in Africa increased production. Could you please introduce the production growth in Ghana? What is your forecast for the production in the coming two years in Ghana?
- George Ayittey: Over the past two years, Ghana's bauxite production has grown significantly. In 2022, Ghana produced around 1 million tonnes and was ranked as the world's eleventh-largest producer of bauxite, with the production increased by 31% compared to 2021. Looking forward, the production is expected to rise to 5 million metric tons by 2026.
- Asian Metal: What do you think of the demand growth from China in the coming two years?
- George Ayittey: We focus on bauxite exports to China. The demand growth for raw bauxite from China over the coming two years is expected to be strong, largely driven by China's significant consumption in its aluminium industry. As the world's largest producer of alumina, China relies heavily on imported bauxite to feed its alumina refineries. By the data from China Customs, China imported over 140 million tonnes of bauxite in 2023, up by over 12% YoY.
- Asian Metal: Present mainstream prices for Guinean bauxite Al2O3 45%min SiO2 3%max keep at USD72-73/dt CIF China, around USD6/dt higher than one year ago. What is the best price from Ghana and what is your expectation in the coming three months?
- George Ayittey: The current FOB price of bauxite in Ghana, at the port of Takoradi, is between USD42-45/mt, and prices might keep stable in the coming three months.
- Asian Metal: Over the past two years, Ghana has exported bauxite by Panamax or mini-cape-size vessels at higher freight rates. What is the current loading situation?
- George Ayittey: Due to infrastructure advancements, bauxite loading in Ghana has recently improved considerably. The Takoradi Port now features a mechanised bauxite handling system that can load 2,500 metric tons per hour directly onto vessels. This development has enabled GBC to transport more than 400,000 metric tons of bauxite every month via capsize vessels.
- Asian Metal: The shipping freight from Guinea to China now exceeds USD30/t, up by around USD5/t from one month ago. What about the freight from Ghana to China?
- George Ayittey: We do FOB only; it's the responsibility of our buyers to charter vessels. Ocean freight from Ghana to China also fluctuates with market conditions.
- Asian Metal: Compared to bauxite from other African countries, what are the advantages of Ghana bauxite?
- George Ayittey: Ghana's bauxite has several advantages compared to bauxite from other African countries, reflecting its potential in the global alumina market and its attractiveness to investors and industry stakeholders. These advantages include: quality of bauxite Al2O3 51%min SiO2 2%max; geological reserves of 200 million tonnes, government support and stability, etc. Enhancements at the Takoradi shipping port, including a new bulk jetty and a high-speed conveyor system, have significantly streamlined the loading process for Cape-size vessels, reducing turnaround times.
- Asian Metal: What is your sales strategy for 2024? Will you focus on long-term or short-term contracts?
- George Ayittey: GBC's sales strategy involves a long-term relationship with buyers, but the company signs quarterly contracts to reflect market conditions. GBC's unwavering dedication to innovation drives its pursuit of environmental responsibility. In partnership with local communities, the company shapes an approach that not only fulfils the world's bauxite needs but also protects the earth's vitality for future generations.
- Asian Metal: A rumour said that Ghana would stop bauxite exports in the near future and encourage the building of alumina refineries. Will that discourage bauxite exports? Does your company plan to build an alumina refinery?
- George Ayittey: So far, we did not receive any official policies. GBC will continue to ramp up production and export the bauxite ore, but it is open to discuss establishing a refinery in the future on a joint venture basis.
- Asian Metal: Thanks for joining the interview, and I wish you better sales in 2024.
- George Ayittey: Many thanks, and all the best!
