September 23, 2010 (Chinavestor) China's Bosai Minerals will make a $1.2 billion investment in Ghana to help the African nation revive its bauxite, aluminium and allied industries. The Ghana News Agency is reporting that letters of intent have been signed following Ghana's President John Evans Atta Mills' recent visit to China.
Bosai acquired a Rio Tinto (NYSE:RTP) joint venture in Ghana in February. The Chinese company is looking to boost bauxite production there to 1.5 million tons by 2011. Chinese officials said the investment would involve bauxite exploration as well as the processing of aluminum for export to the Asian market and the rest of the world, the Ghana press report noted.
The project involves the development of the Ghana Aluminium Refinery Plant and associated infrastructure such as electricity, water and roads to support the project, the news agency reported. Bosai Minerals will own 80% of the project while Ghana's government will own the remaining 20%.