The Ghana Manganese Company (GMC) is set to launch a phased refinery project, aimed at upgrading low-grade carbonate manganese into a more valuable product.
This initiative seeks to improve market demand, boost revenue, and increase foreign exchange earnings.
The first phase, costing $240 million and slated for completion in 24 months, will include the construction of a 45MW natural gas power plant and a two-million-ton annual refinery, introducing advanced industrial technology to the mining sector.
In addition, the project will involve significant investments in a dedicated mineral railway and improvements at the Takoradi Port to optimize future manganese ore exports.
Altogether, Phases 2 and 3 will bring the total investment in the refinery to $450 million.
During a tour organized by the Ghana Chamber of Mines for Journalists for Business Advocacy, GMC General Manager Joseph Ampong expressed optimism about the project’s impact on the mine’s future.
He highlighted that the refinery would generate over 1,000 direct jobs and significantly enhance the company’s revenue.
The company plans to ramp up manganese production to 8 million tonnes annually, with 5 million tonnes to be refined locally.
Mr Ampong added that the project had been delayed for years due to power supply issues, noting that the refinery would need about 45,000 megawatts of electricity.
“I think at some point, they made an attempt to put up the gas plant to cast iron and manganese carbonate deposit so that it becomes very rich before we send it down. But due to power issues, it couldn’t materialize so now we are coming up with new interventions to make sure it works,” he added.
Mr. Ampong stated that the company is relying on Genser Energy to supply the power for the project, utilizing gas sourced from Atuabo.
He emphasized that the refinery would positively affect the economy in various ways, including boosting government revenue, increasing foreign exchange earnings, and creating jobs.
“So definitely, we’re going to have a lot of advantages bringing the refinery on board. The grade we are mining now is low, we are currently selling at 26.5 per cent but when you upgrade it, you refine it, you can get it at 40 per cent and above,” he explained.
Manganese plays a crucial role in the steel industry, representing 75% of global demand, with 20% used in batteries and 5% in fertilizers.
Mr. Ampong noted that the ongoing transition from fossil fuels to renewable energy is advantageous for the company, particularly in the production of electric vehicles. He pointed out that the demand for manganese, lithium, and other essential minerals is expected to rise significantly in the future.
“Manganese is part of the critical piece that forms electric vehicle batteries. So, if you read of late, you will see we are talking about green minerals, critical minerals, and manganese is part of it.
Mr. Ampong stated that the Ukraine-Russia conflict significantly impacted GMC, as Ukraine was a major export market alongside China. He added that the company is actively seeking marketing opportunities globally to ensure the sustainability of its operations.