Reverse cancellation of $1.2bn bauxite lease - Kwabena Asante urges GIADEC
A broadcast journalist, Kwabena Asante, has called on the Ghana Integrated Aluminium Development Corporation (GIADEC) to reconsider its decision to cancel a $1.2 billion bauxite mining lease granted to local firm Rocksure International and its partners.
The concession, which covered parts of the Nyinahin Hills in the Ashanti Region, contains an estimated 376 million tonnes of bauxite – a key feedstock for aluminium production.
The contract was terminated last year, according to Mr Asante, without any clear justification.
Speaking at a forum on the promotion of local businesses in Accra, Mr Asante described the cancellation as discriminatory and a violation of the government’s own policy of supporting indigenous Ghanaian enterprises.
The broadcaster described the move as “troubling” and “indefensible”, suggesting it fits into a pattern of decisions that favour certain individuals with political connections, all under the guise of promoting local participation in the mining sector.
He drew comparisons with the government’s decision to terminate the Damang Goldfields contract, which was justified on the grounds of enhancing local participation.
That concession was subsequently assigned to Engineers and Planners, a local firm.
“We all applauded when the government moved to take over a foreign-managed concession in the name of empowering Ghanaians.
But how do you justify taking from a Ghanaian and handing over to a foreigner or another Ghanaian?” Mr Asante queried.
He indicated his support for Engineers and Planners taking over the Damang mine, but argued that by the same logic, Rocksure — which legally acquired its concession – should be allowed to operate without hindrance.
Mr Asante further alleged that the bauxite concession would likely be awarded to either a foreign company or a “connected” local firm.
He reiterated his call on GIADEC to reverse the decision and hand over the concession to Rocksure International, a wholly Ghanaian-owned company belonging to businessman Isaac Ofori Poku.
In a sharply worded appeal, he urged the Chief Executive of GIADEC, Reindorf Twumasi, to “reverse the decision and restore the concession to the rightful custodian.”
Transparency
Mr Asante cautioned that failure to address these concerns promptly could deepen perceptions of cronyism and unfair competition within Ghana’s extractive sector.
He urged all relevant authorities to uphold transparency, equity, and due process in all concession-related discussions.
