Mytilineos S.A to build Ghana’s first Alumina refinery under GIADEC spearheaded IAI programme

Ghana is set to benefit from a new alumina refinery following the successful selection of a strategic partner that will work with the Ghana Integrated Aluminium Development Corporation (GIADEC) to deliver Project 3A, one of four (4) projects being executed under the Integrated Aluminium Industry (IAI) projects.

President Akufo-Addo who witnessed the signing of the agreements between the two parties at a brief event held in Accra stressed that the execution of Project 3A – Development of a mine at Nyinahin-Mpasaaso and the construction of an alumina refinery, will put an end to decades of exporting raw bauxite from the country to the refining of bauxite mined in Ghana to produce alumina that will feed the VALCO smelter.

“We have mined and exported bauxite in its raw form since the 1940s and have never achieved the goal of value addition or integration despite considerable efforts made by successive governments. I am proud of the progress GIADEC has made since its inception under the leadership of working to leverage on 900 metric tonnes of bauxite and other holdings including the 100% ownership of VALCO to deliver the Integrated Aluminium Industry in Ghana” he said.

The President commended the Board, Management and Staff of GIADEC for what he described as a tremendous work at ensuring that the missing link in Ghana’s aluminium industry, an alumina refinery, is finally going to be established. He urged GIADEC to continue to drive integration of the bauxite – aluminium value chain by ensuring that all aspects of the value chain are developed. President Akuo-Addo emphasized that the selection of a credible and leading global metallurgy and energy Company, Mytilineos S.A as GIADEC’s partner on Project 3A will pave the way for more investments from other global giants in the Integrated Aluminium Industry.

President Akufo-Addo charged GIADEC and its strategic partners to continue to uphold world class environmental standards in their operations. “I am specifically aware of GIADEC’s unwavering commitment to world-class environmental standards which informed their choice for the selected partner for Project 3A. As such, government and the relevant state agencies must ensure the strictest adherence and commitment to all the national and global environmental and social performance standards” he added.

Minister of Lands and Natural Resources, Mr. Samuel Abu Jinapor in his remarks noted that government will continue to create the right investment climate for businesses to thrive and provide the needed support towards the development of a fully functional Integrated Aluminium Industry in Ghana.

Chief Executive Officer of GIADEC, Mr. Michael Ansah on his part emphasized that the execution of Project 3A and all other projects under the Integrated Aluminium Industry is a game-changer and will contribute significantly to the Ghanaian economy.

Mr. Ansah said “GIADEC’s absolute requirement for Project 3A, and the approach presented by our partner, focuses on value addition, as well as the social benefits that will accrue through the creation of over 1,500 jobs over time. We shall ensure collaboration with local subcontractors, prioritise local talent and provide training programmes to align with cultural and environmental considerations”.

Mr. Ansah further stressed that Mytilineos S.A will be required to, first, undertake a Mineral Resource Estimate (MRE) to validate and define the bauxite resources before the construction of a mine and a refinery.

On the downstream sector, Mr. Ansah noted that GIADEC will continue to drive the development of a vibrant downstream sector that will take full advantage of the ever-growing need for aluminium and aluminium related products especially the fast-growing automobile sector in Ghana.

In a statement, Chief Strategy and M&A Officer at MYTILINEOS Energy & Metals, Elenos Karaindros, noted that MYTILINEOS has been a longstanding partner in Ghana; leveraging the country’s extensive experience in numerous power projects.

“We have gained a robust and unique understanding of the country’s energy sector, as well as its people and local environment. Today, we are pleased to embark on the next chapter of this enduring collaboration. As the operator of the European Union’s exclusive vertically integrated aluminum complex, MYTILINEOS brings comprehensive expertise across the entire value chain. More importantly, we prioritize creating value that benefits all partners involved in every project” he stated.

Mr. Elenos further stated that MYTILINEOS is committed to the highest global standards of ESG excellence. He said “our objective is to deliver sustained benefits for the Ghanaian economy and society. For MYTILINEOS, this project aligns fully with our strategy to fortify the security of the bauxite-to-aluminium supply chain and expand our global footprint in metal and mining. We are enthusiastic about the journey ahead and eagerly anticipate working closely with our partners on this landmark project.”

Also present at the event were Members of Parliament for the proposed mining areas and representatives of some government institutions, board members of GIADEC, traditional leaders from communities where the mines and refineries will be situated and other stakeholders.

About GIADEC

GIADEC is a state-owned company responsible for the development of an integrated aluminium industry in Ghana. The company’s portfolio of assets includes mining rights to all of Ghana’s 900 million tonnes of bauxite reserves, 100% shares in Valco – Ghana’s smelting company and interest in Ghana Bauxite Company Limited, a producing mine that has been operating for over 70 years.

Through strategic partnerships, GIADEC, will hold equity stakes in new mines and refineries to be established, and drive integration of the bauxite – aluminium value chain to create value.

GIADEC is guided by its core values of Integrity, Respect and Execution excellence. The company believes in shared prosperity, sustainability and adherence to responsible environmental and operational practices.

About Mytilineos

Founded in Greece in 1990, MYTILINEOS has evolved into an industrial and energy multinational company, publicly listed on the Athens Stock Exchange. With an extensive presence across 5 continents and operations spanning 40 countries in Europe, Asia, Africa, the Americas, and Australia, MYTILINEOS has firmly established itself as a prominent player in the global market.

The company boasts a consolidated turnover of €6,306 million, showcasing robust financial performance and an EBITDA of €823 million, signifying its financial stability and growth trajectory. With a workforce of 6,144 direct and indirect employees, MYTILINEOS is committed to sustainable growth, guided by the highest Environmental, Social, and Governance (ESG) performance indicators, aiming to reduce carbon dioxide (CO2) emissions by at least 30% by 2030 and achieve carbon-neutral business operations by 2050.

As a responsible corporate citizen, MYTILINEOS takes pride in its extensive social and environmental impact, reflected in its €3,058 million total social footprint, €120 million environmental expenditure, and €3.9 million social contributions.

The Metallurgy Sector at MYTILINEOS holds a leading position as the only vertically integrated bauxite, alumina, and aluminum producer in the EU. It boasts world-class bauxite mining facilities, alumina refineries, and aluminum casthouses.

In 2023, the company achieved a production capacity of ~240 Kt of Aluminum and ~870 Kt of Alumina, setting the standard for excellence in metallurgical production. The partner is proud to have reached an impressive 26% in Recycled Aluminium production, showcasing its commitment to sustainable and environmentally friendly manufacturing processes.