World’s largest coal miner eyes Ghana’s bauxite amid global expansion

India’s state-owned Coal India, the world’s largest coal producer, is evaluating opportunities in Ghana’s bauxite sector as it seeks to diversify beyond its traditional coal business and expand its mineral interests overseas.

The reported interest forms part of a broader strategy under which the company is considering mineral opportunities in Africa and other regions, including iron ore, lithium, bauxite and rare earths.

Coal India is also planning to establish its first overseas trading office in Singapore, which is expected to serve as a hub for mineral trading, potential acquisitions and engagement with resource owners.

According to Reuters, citing people familiar with the plans, the company has begun the process of registering the Singapore office. The proposed hub would support the assessment of mineral assets in several countries, including Ghana, Chile, Canada and Australia.

Ghana bauxite attracts interest

Ghana’s bauxite resources appear to be among the opportunities being evaluated by Coal India as the company looks to strengthen its presence in minerals considered important to manufacturing, renewable energy, electric vehicles and defence.

Ghana is estimated to have about 920 million tonnes of bauxite, with major deposits located in areas including Awaso, Nyinahin and Kyebi, according to the Ghana Integrated Aluminium Development Corporation (GIADEC).

However, the country currently does not have an operating refinery to process locally mined bauxite into alumina.

The Awaso mine produces approximately one million tonnes of bauxite annually, which is exported, while the Volta Aluminium Company relies on imported alumina for its smelting operations.

GIADEC has plans to increase bauxite production at Awaso to about five million tonnes annually and develop a refinery with capacity to produce approximately 1.6 million tonnes of alumina per year.

The corporation is also working with Ghanaian mining company Rocksure International on a proposed mine and refinery project at Nyinahin-Mpasaaso.

Separately, Metlen Energy & Metals is involved in a project covering an estimated 300 million tonnes of bauxite, with plans that could eventually support production of up to 10 million tonnes annually and another alumina refinery.

No confirmed Ghana investment yet

Despite Coal India’s reported interest, there is currently no confirmation of a specific Ghanaian bauxite asset, proposed acquisition or investment agreement involving the Indian company.

No particular mine, deposit or Ghanaian company has been identified, and there is no public confirmation that Coal India has entered negotiations with Ghanaian authorities.

Any potential investment would also have to align with Ghana’s integrated aluminium development strategy, which seeks to move the country beyond the export of raw bauxite towards local processing and aluminium production.

Under GIADEC’s framework, the corporation is required to retain at least a 30 per cent interest in new joint ventures within Ghana’s integrated aluminium industry.

Coal India’s interest could potentially introduce another source of capital and expertise into Ghana’s bauxite and aluminium ambitions. However, it remains unclear whether the Indian company is considering acquiring a mining asset, taking a stake in an existing project or securing access to future bauxite production.

For now, the development remains at the evaluation stage and should not be interpreted as a confirmed acquisition or investment by Coal India in Ghana.

Credit: Business Insider Africa