Nyinahin Block B Bauxite Project

1.0 Introduction

As part of the vision of the Government of Ghana (GoG) to build Ghana Beyond Aid, Ghana Integrated Aluminium Development Corporation (GIADEC) was established by an Act of Parliament: GIADEC Act, 2018 (Act 976) with the mandate to promote and develop an Integrated Aluminium Industry in Ghana. From December 2018 to February 2019, the Integrated Aluminium Industry Project transitioned from a Working Group and MinCom to GIADEC. This meant all Bauxite Resources in Ghana were held in trust by GIADEC for the good people of Ghana.

The Bauxite Resources held in trust by GIADEC, included, but not limited to, those in Awaso, Nyinahin and Kyebi, with a total estimated resources at the time, of 900 million tonnes. The Nyinahin Bauxite Resources stretches on a strike length of over 35 kilometers and had been divided into 3 individual Blocks: Blocks A, B and C, with Block A near Nyinahin, Block C near Mpassaso Nos. 1 and 2 and Block B in the middle. The Kyebi and Awaso Bauxite Resources remain as individuals.

2.0 GIADEC Investor Engagement Rounds

2.1 Identification and Selection of Strategic Investment Partners

The identification process involved the selection of prospective strategic investment partners who expressed interest in the Graphic Advertisement of the 14th May, 2019 by providing particulars and a request for inclusion. The investment partners included local participation across the entire value chain: mining, refinery, smelting, power and downstream industries, with GIADEC’s equity participation of 30% (including GoG’s free holding of 10%) in a Special Purpose Vehicle (SPV).

2.2 Investors Rounds of Engagement

There were three Rounds of Engagement in this process.

2.2.1 Round 1 – Invitation to Participate in the Investor Engagement Rounds

All prospective investors who had expressed interest in the Graphic Adverts were invited to participate in this Round of Engagement. The period from the advert to the announcement of results was 14th May, 2019 to 26th July, 2019.

2.2.2 Round 2 – Submission of Proposed Scope and Structure

This round was opened to Investors who had progressed from Round 1 and had been invited to Participate in Round 2. The period from the invitation to the announcement of results was 9th August, 2019 to 17th October, 2020.

2.2.3 Round 3 – Submission of Best and Final Offer (BAFO) and Preliminary Due Diligence

This round comprised 3 sub-parts: (a) SI Engagement and Discussion; (b) Submission of Best and Final Offer (BAFO); and (c) Inspection and Onsite Verification The process took up to 6th July, 2021 when GIADEC announced the results

3.0 Activities post round 3

3.1 The Heads of Terms

The terms under which the SPV will be formed were developed and signed on 7th July, 2021.

3.2 Prospecting Agreement

This was signed on 27th July, 2021 between GIADEC and Rocksure International and endorsed by the Minister for Lands and Natural Resources. It expires on 5th August, 2023. Though the agreement mentions a duration of 3 years in Section 2 – Consent and Grant of Prospecting Licence, the stated expiry date gives it a duration of 2 years.

3.3 Forestry Permit

GIADEC submitted to Rocksure the Forestry Permit from the Forestry Commission on the 6th September, 2021. The Permit was dated 10th March 2021 and expires on 10th March 2022, but can be renewed.

3.4 Environmental Protection Agency Permit

GIADEC submitted to Rocksure a EPA permit on 6th September, 2021. The permit is dated 12th March 2021 and expires on 11th March 2023.

3.5 MinCom Prospecting Permit

Inspectorate Division of the Minerals Commission issued a prospecting permit to Sahara Natural Resources, the Contractor hired by Rocksure to do the prospecting activity. The Permit was issued in the name of the Lead Geologist. It is dated 22nd October and expires on 31st December, 2021.

3.6 The Launching and Signing Ceremony

On 6th September, 2021, GIADEC sent a letter inviting Rocksure to the Launching of the GIADEC’s Four-Project Agenda for the Integrated Aluminium Industry and the Signing Ceremony between GIADEC and Rocksure as the 1st Selected Strategic Partner for the Implementation of Project 2 on the 14th September, 2021 at the African Trade House, Accra. The President H.E. Nana Addo Dankwa Akuffo-Addo graced the occasion with his presence and witnessed the signing ceremony.

3.7 Introduction of Rocksure International to Key Traditional Chiefs and District Admistrative Heads

3.8 Preparation towards Prospecting Drilling (From now to 7th January, 2022)

Main Access Creation
Grid Accesses Development
Recruitment of exploration casual labour from the affected communities to be agreed between GIADEC, the 25-Member Committee and the key Traditional and Opinion Leaders
Create Accesses between Hills 6, 5 and 4
Protection of entry into the concession

3.9 Prospecting Drilling and Mineral Resource Evaluation (MRE) (1st January 2022 to October 2022)

Complete the MRE by December, 2022 and commence Bankable Feasibility Studies for the Mine

3.10 Mining Lease and Ratification by Parliament via GIADEC (December 2022)

Completion of Bankable Feasibility Studies
Application for Mining Lease
Application to Parliament for their Ratification according to Article 268 Clause 1 of the 1992 Constitution

4.0 POST MRE

4.1 Formation of SPV (December 2022)

Completion of Bankable Feasibility Studies
Application for Mining Lease
Application to Parliament for their Ratification according to Article 268 Clause 1 of the 1992 Constitution

4.2 Rocksure Finalising Funding for the Mine and Infrastructure (Q2 2023)

Mine Development and Working Capital
Railway construction from Dunkwa to Nyinahin

4.3 Rocksure Finalising Feasibility Studies for the Refinery and Smelter (Dec 2022)

4.4 Rocksure Finalising Funding for Refinery and Smelter (Q1 2023)

Refinery Construction and Working Capital
Smelter Construction and Working Capital

4.11 Finalising Funding for the Mine and Infrastructure (Q2 2023)

Mine Development and Working Capital
Railway construction from Dunkwa to Nyinahin

4.12 Finalising Feasibility Studies for the Refinery and Smelter (Dec 2022)

4.13 Finalising Funding for Refinery and Smelter (Q1 2023)

Refinery Construction and Working Capital
Smelter Construction and Working Capital