Editorial: US$600m iron ore project commences soon

The Shieni project aims to boost the economy. It follows decades of efforts to create an iron and steel industry in Ghana.

The Shieni iron ore deposit is a key mineral resource. It has an inferred resource of 1.312 billion tonnes with 33.8% iron content. In contrast, the Opon-Mansi deposit has 147 million tonnes but a higher iron content of 52.5%.

Mr. Williams Okofo-Dateh is the CEO of Ghana Integrated Iron and Steel Development Corporation (GIISDEC). He noted that starting a small steel plant costs about US$100 million. Developing the entire industry requires between US$300 million and US$600 million.

Finding investors with financial capacity is crucial for this project. Investors need assurance of mineral availability for at least 20 to 30 years. The resource estimate shows that reserves can support long-term production.

Currently, Ghana relies heavily on imported steel products from China and Turkey. Almost all steel materials, including construction steel and roofing sheets, are imported due to no local production facilities.

In 2023, Ghana imported US$527.51 million worth of iron and steel, according to UN COMTRADE data. Of this amount, US$35.6 million was spent on steel bars, making Ghana the 24th-largest importer globally.

Additionally, Ghana imported US$364 million in articles made from iron or steel, which is 2.22% of total imports. The country has a surplus production capacity of 650,000 metric tonnes annually. This surplus could help reduce imports and increase exports in the future.