Cost of Ghana’s Aluminum Projects Will Outweigh the Potential Benefits, Duke University Report Warns

A Nicholas Institute report is sending a warning signal to the government of Ghana that, the cost of the proposed aluminum industry projects linked to the Sinohydro agreement would outweigh the potential benefits, writes ghenvironment.org. According to the report, Ghana’s environmental assessment laws are not adequately tailored to address risks, and the government has not facilitated a comprehensive transparency concerning the planned aluminum industry projects and the Sinohydro agreement.

The main contention with environmentalists is the plan to permit bauxite mining in Atewa Forest—a biodiverse forest preserve—the main source of three major rivers that provide water for 5 million people, according to the ghenvironment.org article. Three global manufacturing companies—BMW Group, Tetra Pak and Schüco International—recently said they would not source bauxite from Ghana’s Atewa Forest due to the environmental risks associated with mining the forest.

“By calling out the risky nature of mining bauxite in the Atewa Forest, BMW Group, Tetra Park and Schüco International have certainly put the business community on notice and at the minimum their peer firms are likely to proceed with caution when sourcing bauxite from Ghana in the future,” said Terrence Neal, a natural resources governance researcher and author of the report.