GIADEC, RUSAL Sign $1.5bn Deal to Develop Nyinahin Bauxite, Alumina Refinery

Russian aluminium giant to mine up to 5 million tonnes of bauxite annually and build a 1.2-million-tonne refinery in Ghana's Ashanti Region, marking the most concrete step yet toward an integrated aluminium industry.

ACCRA, Nov. 11 — Ghana has moved a significant step closer to processing its bauxite domestically after the Ghana Integrated Aluminium Development Corporation (GIADEC) and Russian aluminium producer RUSAL signed an agreement to develop the Nyinahin bauxite deposit and construct a 1.2-million-tonne-per-year alumina refinery.

The agreement, signed in Moscow on October 29 during the Russia–Africa Forum, provides for bauxite mining operations with annual output of up to 5 million tonnes and a refinery expected to cost more than $1.5 billion and take approximately 36 months to complete . The deal was publicly reported this week.

The mining project covers the Nyinahin deposit in the Ashanti Region, where estimated mineral resources in the area earmarked for development exceed 100 million tonnes of bauxite . The refinery will use natural gas as its energy source.

Joint Venture Structure

The projects will be implemented through two joint ventures: Nyinahin Bauxite Limited and Ghana Alumina Company. RUSAL will provide the financing and hold majority stakes in both companies. Under Ghanaian law, the Ghanaian side will hold a minority stake, including a 10% non-dilutable interest .

"Ghana has some of the largest undeveloped bauxite reserves in West Africa, and we see an opportunity to establish an integrated production chain here — from mining 5 million tonnes of ore per year to producing 1.2 million tonnes of alumina," said Evgeniy Nikitin, General Director of RUSAL. "RUSAL has been operating in Africa for more than 20 years, and this experience will enable us to implement the Ghanaian projects efficiently, from design through to reaching full production capacity" .

Reindorf Twumasi Ankrah, CEO of GIADEC, said the agreement aligns with the corporation's mandate. "The Nyinahin projects will bring investment, thousands of jobs, improvements to rail and port infrastructure, and new opportunities for Ghanaian businesses" .

The agreement also provides for joint exploration of newly identified hills in the Bono, Western, Ashanti and Eastern regions to establish the commercial viability of their bauxite deposits .

Background: A Long Road to Refining

The deal represents a breakthrough for Ghana's long-stalled ambitions to build an integrated aluminium industry. The country holds an estimated 920 million tonnes of bauxite, yet has historically exported the raw ore while importing alumina for the Volta Aluminium Company (VALCO) smelter .

GIADEC was established under Act 976 of 2018 to develop the entire aluminium value chain, from mining through refining to smelting and downstream manufacturing . But progress has been fitful. A previous lease covering the Nyinahin Hills, held by local company Rocksure International in partnership with GIADEC, was terminated after it was never ratified by Parliament — a requirement reinforced by a 2019 Supreme Court ruling . The $2 billion Sinohydro barter deal, which promised infrastructure in exchange for refined bauxite, also failed to deliver the refinery component .

President John Dramani Mahama has made domestic refining a priority, stating at the 2026 Mining in Motion Summit that Ghana must "move beyond exporting mineral ores to building industries that could process them into materials required by manufacturers" . His administration has set a target of ending unprocessed mineral exports by 2030.

Analyst Caution

While the RUSAL agreement is the most concrete refinery commitment to date, questions remain about execution. RUSAL, one of the world's largest aluminium producers, brings deep technical expertise and a track record of operating in Africa, including in Guinea and Nigeria. But the project's viability depends on reliable gas supply for the refinery, completion of rail links to transport ore and alumina, and the modernisation of VALCO to absorb refined output .

The refinery's 36-month construction timeline, if met, would see first alumina production around late 2029. Whether that schedule holds will be a key test of Ghana's ability to convert mineral wealth into industrial capacity.