US$600m iron ore project to begin in 2025

Ghana has large iron ore reserves, estimated at 1.7 billion tonnes. These reserves are mainly in the Savanah and Oti regions. The iron content exceeds 55 percent. Despite this potential, Ghana imports 800,000 metric tonnes of iron and steel each year. This costs around US$900 million annually.

Emmerland Resource Limited will lead the new mining project. This local company has the necessary licenses to mine at the Shieni iron ore deposit in the Northern Region. Williams Okofo-Dateh is the CEO of Ghana Integrated Iron and Steel Development Corporation (GIISDEC). He stated that the Shieni project could be a cornerstone for Ghana's economy.

This initiative follows decades of attempts by past governments to build an iron and steel industry in Ghana. Mr. Okofo-Dateh emphasized that GIISDEC aims to develop this industry with Emmerland Resource Limited's help. He expressed confidence that the iron ore industry will begin operations this year.

The Shieni deposit is one of Ghana’s most significant mineral resources. It has an inferred resource of 1.312 billion tonnes with a 33.8 percent iron content. In comparison, the Opon-Mansi deposit in Western Region holds about 147 million tonnes but has a higher iron content of 52.5 percent.

Progress had stalled until GIISDEC began attracting private investment for this project. Mr. Okofo-Dateh explained that starting even a small steel plant requires about US$100 million. To fully develop the industry, between US$300 million and US$600 million is needed.

Finding investors with sufficient financial capacity is crucial for success, he added. The project's long-term viability depends on both quality and quantity of iron ore deposits available for mining.

Preliminary studies indicate promising results for these deposits' availability over time. Investors need assurance that minerals will last for at least 20 to 30 years before committing funds.

Currently, Ghana relies heavily on imported steel products from countries like China and Turkey. Most construction materials are imported due to a lack of domestic production facilities for processing iron ore.

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

Major sources included China (US$17.2 million), South Africa (US$