Iron ore exploration gains momentum in Oti Region                                 

The Ghana Integrated Iron and Steel Development Corporation (GIISDEC) is working with Africa Exploration and Minerals Group (AEMG) in the Gyamurume community. Their collaboration began in 2020 in the Kadjebi district.

Initial exploration findings suggest that iron ore deposits here are promising. During a recent visit, GIISDEC officials found oxidised iron ore with high iron oxide content. Some samples contained up to 82 percent iron oxide, translating to about 57 percent iron. On average, the oxidised ores had around 67 percent iron oxide or 47 percent iron.

William Okofu Darteh, CEO of GIISDEC, shared these early results with B&FT. He noted that the initial tests show very good grades of ore. However, they still need laboratory analysis for confirmation.

If confirmed, these grades could surpass those from other African mines. This potential has attracted interest from investors. Darteh emphasized that they want accurate data before serious negotiations begin.

Exploration efforts have included remote sensing and geophysical surveys. AEMG identified 11 drilling targets from an initial 54 areas. Drilling started in mid-2024 and eight out of thirty planned drill holes have been completed so far.

The full drilling program covers fifteen lines over a 2,500-metre area. It is expected to finish by June 2025, followed by a resource estimate by September.

Franklin Mace, chief geologist at AEMG, reported consistent results from drilling. They are encountering banded iron formations averaging about 30 metres wide. Unexpectedly, they also found serpentinite rocks which may indicate nickel presence.

Geological mapping has identified approximately 42,000 square metres of fully oxidised ironstones and 36,000 square metres of partially oxidised deposits. These formations extend over an eight-kilometre area and dip steeply to the east.

Over one hundred rock samples have been tested by Intertek Laboratory and the University of Ghana. Results confirm high iron content in the area.

Prof. Frank Nyame from the University of Ghana stressed the importance of drilling for depth confirmation. He stated that while ore occurs on the surface, it needs verification at depth.

Once drilling is complete and estimates are ready, GIISDEC plans to attract investment into this sector. They aim to develop a full value chain for iron and steel production in Ghana.

Darteh believes this could be transformative for Ghana's economy by reducing reliance on gold and cocoa exports. He anticipates having a full resource estimate by September 2025 to guide future steps.

Ghana holds about 1.7 billion tonnes of iron ore reserves overall. This includes significant deposits like Shieni (1.3 billion tonnes at 33.8% Fe) and Opon-Mansi (147 million tonnes at 52.5% Fe). A US$600 million mining project at Shieni will start in late 2025 to reduce annual steel imports worth US$900 million.

The nation aims to process its own iron ore domestically by 2027 for steel production while focusing on job creation and value addition.

Local leaders are closely monitoring these developments as well. Osaberima Osei-Bonsu V supports the project as it represents legal mining opportunities for their region.

He highlighted differences between this project and illegal small-scale mining operations nearby. The community expects benefits through jobs and other opportunities created by this initiative.

Despite logistical challenges due to terrain issues, GIISDEC remains committed to progress on this project.
They are collaborating with consultants like SRK and local institutions such as the Ghana Geological Survey Authority for oversight.
Local contractor BobJosh Drilling Company provides portable rigs suited for difficult terrain navigation.
Darteh acknowledged access road difficulties but assured that they are addressing these challenges as they arise.
If successful, this project could establish a new industrial sector in Ghana's economy.