No Corruption in the Matter of the Sale of Ghana Bauxite Company to Ofori-Poku Company Ltd

For My Mouth will Speak the Truth, wickedness is an abomination to my Lips’ This a quote from the Holy Bible at Proverbs 8:7 which admonishes us, the creation of Almighty God to speak the Truth and nothing but the truth, So, as part of our bid to reset Ghana we need to apply critical mindset or thinking to debates on national issues for the way forward. Hence, this submission on the history on Bauxite in Ghana was motivated by an article reportedly written by Mr Martin Kpebu Esq which impugned acts of corruption and conflict of interest in the sale of the 80 percent stake in Ghana Bauxite Company Ltd to Ofori Poku Company Ltd and so, he called for forensic audit into the matter.

As a former Army Officer of the Second Infantry Battalion in the Western Region and a former Loss Prevention Officer (Security Superintendent) of Bogoso Mine, hence President Nkrumah’s new Citizen, with very good and wide experiences in the Mining Industry, as well as a student of security risk management, who is availing his experiences and skills for a better Ghana Agenda, I decided to conduct a deeper investigation into the matter to help the better Ghana Agenda of President Mahama.

So, I went deeper into the matter of Bauxite as far as 1921 when it was discovered in the Guggisburg era and was part of the 10 years Development Master Plan of Brigadier General Guggisburg, So, some of you like President Mahama, will be very happy with the good work of Ofori Poku Company Ltd, through its Owner, Mr Ofori Opoku for good job that will help boost President Mahama’s 24 hour economy, within the shortest possible time. So, Mr Gosse Tanoh to take note.

The good work of Mr Ofori Poku, is in line with the vision of President Nkrumah and that of Brigadier General Sir Fredrick Gordon Guggisburg, who initially was a Surveyor in Gold Coast in 1902 and who set up the Geological Department. He later on joined the Military and took part in the First World War as a Military Officer and after the war that he became the Governor of the Gold Coast from 1919 to 1927.

General Guggisburg is credited with the massive development of the economy and Infrastructure of Gold Coast. So, President Nkrumah also continued with the massive development of the economy and Infrastructure of Ghana as initiated by General Guggisburg. This is the true history of Ghana.

It must be noted that the accurate Map of Ghana was done by a Gold Coast Surveyor, he was then Mr Fredrick Guggisburg who was stationed in Kumasi. Bauxite was discovered in Gold Coast by the regime of General Guggisburg in 1921 by the Gold Coast Geological Department he set up before he became Governor. This was done through the help of a Geologist namely Mr Albert Ernest Kittson. General Guggisburg was the one who drew up the first 10 years development master plan for Ghana then the Gold Coast and it was this master plan that Dr Nkrumah that was adopted and worked to execute and improve it.

The exportation of timber, cocoa, manganese and bauxite caused the construction of the Takoradi Harbour by General Guggisburg and he had a plan to extend the Railway line to Awaso from Dunkwa Railway Station for hauling of bauxite.

So in effort to reset Ghana, it will require us to acknowledge and appreciate the history of Ghana. This would lead us to see the need to honor Brigadier General Guggisburg. The Dormitory at Navrongo Secondary School in the Upper East Region named after this great man of or for Ghana must be adopted by the State and make it the best Dormitory in the School at all times. He must be regarded as one of Ghana’s Hero.

The people of Ashanti Region especially the Ashantis through His Royal Majesty, the Ashantehene need to note the importance of Guggisburg in the history of the Ashanti Empire. Young Mr Guggisburg was first a Surveyor in the Gold Coast and was stationed in Kumasi or simply the Ashanti Region in 1902 and worked very closely with the Chiefs and people of the Ashanti Region. So when he became Governor of the Gold Coast, he ensured the release of Nana Edward Agyeman Prempeh the First who was initially as Kweku Duah, from exile from the Seychelles Island in 1924.

Former President Nana Addo, should also be commended for his attempt to update the Goggisburg economy through industrialization (One District, One Hospital and One Industry) hence his regime worked with Ofori Poku Company Ltd for the development of the Aluminum Industry in Ghana through refinery of Bauxite into Alumina in Ghana and the Smelting of Alumina into Aluminum by VALCO and new Smelters thus boost the 24 hour economy project in Ghana. So Mr Ofori Poku deserves special commendation and this submission will reveal why so. So, President Mahama must ignore the ugly noise by Mr Martin Kpebu Esq and others.

My investigation as stated below will reveal that no wrong doing on the part of Ofori Poku Company Ltd because the deal was done in accordance with the global opened door (transparency and accountability) guidance policy by the UN Arm’s length policy for the Mining Sector or the universal policy as pertained in the Mining Industry and the global Stock Market. So I will start on the history of Bauxite in Ghana which will help me to tell the circumstances that led to the involvement of Mr Ofori Opoku in the Mining Industry and my conclusion that no wrong doing and he rather needs special commendation and the Support of Hon Mr Gosse Tanoh for the 24 hours economy. .

Bauxite ore is a Mineral ore that contains aluminum metal. Hence, it is a resource governed by Clause 6 of Article 257 of the 1992 Constitution, hence before mining it through granting of Mining Right or Mining Lease requires ratification by Parliament as required at Article 268 of the 1992 Constitution. Bauxite especially that of Ghana contains 52 percent Aluminum and 1.5 percent Silica. Bauxite is mined and refined into Alumina which is smelted to Aluminum.

Through the good effort of General Guggisburg, Bauxite was discovered in Gold Coast in 1921. Ghana has 900 million metric tonnes of Bauxite as follows. (a). Awaso in the Western North has 60 million metric tons, (b). Nyinahin in the Ashanti Region has 700 Million Metric Tons and (c). Kyebi in the Eastern Region 160 million metric tons.

History tells that the need for refining of Bauxite into Alumina and Smelting of Alumina into Aluminum in the Gold Coast was considered by General Guggisburg. So, refining of bauxite in Gold Coast was among other good reasons that motivated the original plan for the Volta River Project, especially the construction of the Hydro Power Station in Ghana as part of the 10 years Development Master Plan of Governor Guggisburg.

So by the first feasibility studies, Ajena an area in the Eastern Region along the River Volta, with a very good gorge very good for Hydropower Dam and easy to connect to the railway line to the area, was what was in the master plan by the regime of General Guggisburg for among other usages for the refining of bauxite ore into Aluminum and Smelting of Alumina into Aluminum in the Gold Coast.

So, the then British Government was informed and the British Aluminum Company Ltd came to Gold Coast and started the mining of Bauxite in 1940, after the extension of a railway line from Dunkwa to Awaso for the exportation of the Bauxite from Awaso to Alcoa Corporation etc.

This was the situation before Gold Coast attained Independence in 1957 with the new name Ghana by President Nkrumah, the Founder of the Nation. That was under the regime of CPP. The CPP regime made an attempt to change the narrative by halting the exportation of bauxite and to opt for the treatment of or extraction of Aluminum from bauxite in Ghana.

So, President Nkrumah decided to carry out the project at Ajena but could not raise the needed funding. So the USA Government was contacted and Ghana was linked to Alcoa Corporation of America, with a subsidiary Aluminum Company of America to assist to provide the funds and undertake the Project. Hmm Alcoa Corporation was/is Conglomerate with Bauxite Refinery to refine into Alumina and Alumina Smelter to smelt Alumina into Aluminum.

Pardon me to deviate from the topic, to help drive my point home. The mining industry is full of very sharp and very smart people. So, Alcoa Corporation for a secret motive especially to ensure good supply of raw bauxite ore for the Bauxite Refineries of Alcoa Corporation, cleverly convinced President Nkrumah to change the plan from Ajena to the alternative site at Akosombu, that is to build the Hydropower Station at Akosombu and for win-win reason,, Alcoa Corporation suggested that it will set up a special purpose vehicle as VALCO to fund the Project and to build a Smelter or factory namely VALCO Tema to receive feed of Alumina from the Alcoa Smelting Plants namely VALCO at Tema to smelt Alumina ingot from the Smelter of Alcoa in USA into Aluminum, which must be provided with very cheap power from the Power Station.

In 1972, as part of the Policy of Nationalization especially Ghanaians to take over the Commanding Heights in the National Economy, the late General Acheampong of blessed memory caused Ghana to acquire 55 percent stake in the Ghana Bauxite Company by Mining Operations Decree (Government Participation) Decree 1972 (NRC132).

Due to a very low production problem or a high cost of running GBC, or no much gains from GBC made the Government of Ghana, then the majority Shareholder through the regime of PNDC in 1982 to diversify Ghana’s interest in GBC to become minority shareholder with 20 percent stake in GBC.

It is interesting to note that the hauling of Cocoa, timber, manganese and bauxite to the Takoradi Harbour was as result of the collapse of the Railway Service by 1982. This gave birth to the Hauling of Bauxite and Cocoa by road to Takoradi Harbour by Great Grunshie Transport Ltd now Global Haulage of the late Alhaji Adamu Iddrisu of blessed memory and others.

Due to losses incurred by GBC, the PNDC in 1997, was able to sell 35 percent out of the 55 percent stake in GBC to Alcan, a Canadian Company whilst the Government kept 20 percent, later on Rio Tinto a British-Australian acquired the 80 percent stake of the Alcan interest and also sold the 80 percent stake to Bosai Minerals Group of China in 2010.

It must be noted that Ofori Poku Company Ltd joined the hauling of Bauxite by road by 1997. So when Bosai Minerals Group took over the operation of GBC in 2010, Ofori Poku Company Ltd was made to also undertake the mining operations of Bauxite on behalf of Bosai Minerals Group, whilst the Chinese through Bosai Minerals the majority shareholder concentrated in the management of GBC and hauling the bauxite to Takoradi Harbour. In 2013 Bosai Minerals Group ceded off the haulage operation to Ofori Poku Company Ltd.

The mining lease of GBC under Bosai Minerals Group expired in 2021, and attempt to get it renewed was rejected by the regime of President Nana Addo, with the reason that, Bosai Minerals Group through GBC did not built and was not ready to build a Refinery Plant or a Factory to treat Bauxite in Ghana or take part in the One District, One Factory Policy. So Bosai Minerals Group was forced to wind up her activities, so the external Board of GBC in 2021 that is the Board of Bosai Minerals Group in China had to put Bosai Minerals Group’s 80 percent stake in GBC for sale.

Ghana Government was given the right of first refusal to acquire the 80 percent stake in GBC, so Ghana Government in 2021 refused the offer on the basis that there was no value for money. So Bosai Minerals Group sold her 80 percent stake to Ofori Poku Company. So sale and purchase agreement was between Bosai Minerals Group and Ofori Poku Company Ltd.

As stated above, an article in the name of seasoned and very patriotic Mr Martin Kpebu Esq made an allegation of wrong dealings with sale of Ghana Bauxite Company, thus called for forensic audit into the sale of GBC to Ofori Poku Company Ltd owned by Mr Ofori Poku. According to Martin, the shares were valued 12.5 Million Dollars in 2022 and that less than two years, GBC Share is now valued at 1 Billion US Dollars, so he is of the mistaken belief that Mr Ofori Poku, then the Local Board Chairman of GBC and the CFO acted in wrongly against the interest of Ghana. Mr Ofori Poku must be commended and regarded as a national Hero or Champion by our beloved President Mahama through Hon Mr Gossie Tanoh for making it possible for a project for his 24 hour economy.

Martin failed to appreciate that in the Mining Industry, the activities of the Multinational Mining Companies is guided by the principle of probity, transparency and Accountability. This so because the value of the Company must be proclaimed or made known to both the public and the Shareholders and this is also a requirement for a Company listed in International Stock Market.

Martin must note that the sale of a Mining Company to other Mining Companies is done by the Arm’s Length Principle as decreed by the UN, thus it must be based on Market Value of the share or ounce of gold etc as proclaimed and established Benchmark price, by considering factors like supply. Demand, and production cost. Some Mining Companies may make it to involve among others by multiplying the proven minerals say ounces of gold or tons of bauxite reserves or shares times the current price per ounce of gold or price of per a share or per a tonne of bauxite.

So the computation of the selling price of GBC to Ofori Poku can easily be calculated by a student of SHS from data provided on the websites or brochures issued to a shareholder. So the price used to sell GBC at about 13 Million US Dollars, was based on the price which the Chinese quoted as the price of Ghana’s bauxite and the quantity of shares were determined by Bosai Minerals Board based on the information available to the general public.

So if there was any problem with the sale of GBC, then the government of Ghana and the CEOs of the Minerals Commission between 1982 until 2020, hence the PNDC and both the NDC and NPP Administration in the 4^th Republic stand accuse for not doing good for Ghana. The Company reportedly did not make a loss in 2018 and made profit in 2019 and 2020, so the regime of President Nana Addo must be commended and yet Nana Addo still felt the need to take over without a judgment debt or displeasing the government of the Chinese by refusing to buy GBC.

So, the alleged low price of GBC if it is true or as mistakenly thought by Mr Martin Kpebu Esq is not the fault of Ofori Poku Company Ltd that is the new buyer but was the story of sad story with GBC. Ofori Poku Company Ltd per the Mining laws and regulation was a Mine Support Services Provider under the local policy of the Government of Ghana initiated. Ofori Poku, was therefore contracted by Bosai Minerals Group of China for mining and hauling of the bauxite in 2010, as required at Section 59 of Minerals and Mining Act 2006 (Act 703) on Mine Support Service.

So as contracted by GBC or the Chinese majority shareholder, the Contracting Company herein Ofori Poku Company Ltd is only paid for the services fees as per the service agreement and the actual services rendered, so aside proposing the contract service fees, Mr Ofori Poku nor his staff do not determine the price of bauxite per ton or the proven available bauxite ore reserves of GBC, which are openly proclaimed or provided by the Company to the public or the Shareholders and or the Capital and Stock Market. .

So, any problem with the transaction was due to GBC through Bosai Minerals Group, not using the true market price of bauxite, thus if any low price of GBC, then the Chinese should blame themselves for selling bauxite at lower rate say 38 US Dollars per ton to fleece Ghana instead of the 70 US Dollars per ton in USA. Google for the price of bauxite and you will see the discrepancies. Thus under invoicing to cheat Ghana has been the order the day at GBC since 1997 with the support of our Officials. Hence the huge losses incurred by GBC since 1982.

So, Cry the beloved Country, the story of operation of Ghana Bauxite Company (GBC) or the mining of bauxite has been a very sad one. Beside the destruction of the environment and the main road from Awaso to Takoradi Harbour without paying a road usage toll, GBC most of the time operated or ran at very huge loss, so no dividend was paid to the 80 percent Shareholders and the 20 percent shareholder or for the stake of the Government of Ghana.

Hmm, the situation was very bad in 2010 during the regime of President Mills due to the then British management of GBC colluding with some officials of Ghana to loot and looted Ghana, repeat looted Ghana. Google for the British Duped Ghana Millions of US Dollars in the Bauxite sale to Bosai Minerals Group of China as by one Larry Dogbey of the Herald Newspaper.

So, as far as the mining of bauxite is concerned, all the regimes since 1997 thus in the Fourth Republic except the regime of his Excellency President Nana Addo failed Ghana, so join me to salute former President Nana Addo and so let say well done Nana, the show boy, for the successful showdown he dealt with Bosai Minerals Group through GBC. Google for Tensions at Ghana Bauxite Company as Strategic Investor pulls out.

Also join me to say very excellent work for Ghana towards our 24 hour economy by Mr Ofori Poku, the founder and owner of Ofori Poku Company Ltd for investing in the Bauxite Mining Industry that made him and this staff of the Company to gain very rich experiences in the Mining of bauxite operation and hauling of Bauxite.

The issue of Mr Ofori Poku made the Board Chairman of GBC was because his Company was doing the mining operation and Hauling of the Bauxite. My experiences in the Mining Industry especially with a Multinational Mining Companies, has given me the confidence to say that there were two Boards for GBC, namely the External Governing Board and the local Board.

The External or foreign Board includes the CEO of the Parent Company of GBC, and one Ghanaian. Then the local Board which is subordinate to the External Board since they cannot sell the Company or look for foreign investors, therefore toothless and is mainly of Ghanaians, with the Board Chairman as a Ghanaian. So Mr Ofori Opoku was nominated as Board Chairman of GBC of the local Board of GBC under Bosai Minerals. Two or more members of the Members of the local Board are nominated by the Government of the Day. So President Mahama to take note to change the Board Members who were nominated by NPP.

So the Power to sell the Company name GBC in 2022 was determined by the Board of Bosai Minerals Group Board that is the external Board of GBC that was the majority shareholder who was selling his or her shares. As stated, the selling price of say a Gold Mining Company is easily determined mainly by the proven Gold Reserves multiple with the Spot price of gold as determined by the London Bullion Marketing Association, unfortunately, this is not so with other minerals like Bauxite. So the true market value was or is not used by the Foreign Investors. So Ghana to ensure the Lithium Company and Ghana Manganese use the correct or the market rate for the lithium ore and Manganese respectively.

In 2022, Ofori Poku Company Ltd a Ghanaian Company bought the 80 percent stake held by Bosai Minerals at the price determined by the Chinese and not the buyer. Most often some sellers are paid with shares in the new Company. That makes the situation in the mining sector as complex and the issue of collision may be possible in the sale and purchase agreement.

A new Mining lease was granted in 2024 to GBC now under Ofori Poku Company Ltd, the Group as the 80 percent or majority shareholder and this was ratified by Parliament. The 20 percent of the stake in GBC is held by Ghana Integrated Aluminum Development Corporation (GIADEC) through GIADEC Act 2018 (Act of 976) for the developing an Integrated Aluminum Industry in Ghana.

The Minister for Mines, Mr Gossie Tanoh, and the Minister for Industries should support Mr Ofori Poku to help bring the vision of President Mahama especially the 2 hour economy a reality. So therefore ignore the ugly noise of my good friend Mr Martin Kpebu Esq

Mr Martin Kpebu Esq and others must understand that in the Mining Industry, things are cyclical and the sector is associated with volatile or fluctuating prices of the metal or mineral and is confronted with environmental concern, so the business must be done in a very fast and smart or sharp or soldierly way.

I do understand that his worry may be due to the problem in Mining Sector as stated full of smart and sharp persons some may say tricksters. Google for ‘In the Matter of the Golden Share” The article is about the fight for Government of Ghana by Ghanaians and their foreign accomplices to facilitate the sale or merging of Ashanti Gold Company between 2002 and 2004. It then involved the Obuasi Mine, Bibiani Mine and Iduaprim Mine, Tarkwa.

Sir Sam Jonah and others may either be credited or discredited with the merging of AGC with AngloGold to form Ashanti AngloGold a Conglomerate with headquarters in South Africa, where in a very smart way, the Company namely AngloGold Ashanti sold her Mining Company out. So AngloGold Ashanti has no mining company in South Africa, what it has are shares floated in the Johannesburg Stock Market. So Ghana should lobby to get the Headquarters in Kumasi Ghana.