The Ghana Integrated Iron and Steel Development Corporation (GIISDEC) is actively engaging investors to unlock the potential of the domestic iron ore industry, its Chief Executive Officer (CEO), Kwabena Bonsu Fordwor, has revealed.
GIISDEC is seeking private investors to explore the natural resource, which is estimated at 6.4 billion tonnes in inferred reserves. The country currently has iron ore deposits in Shieni in the Northern Region, Opon Mansi in the Western Region, and deposits in Oti and Pudo in the Upper West Region.
The move to develop the industry comes at a time when the global demand for iron ore is surging, driven by the strong demand for steel in major economies, such as China and India. The international iron ore market size is estimated to grow from US$405.1billion in 2022 to US$447billion in 2023 at a compound annual growth rate (CAGR) of 10.3 percent.
Further to this, the iron ore market size is expected to grow from US$657.73billion in 2027 at a CAGR of 10.1 percent.
The current market demand presents a significant opportunity for the country to capitalise on its vast iron ore reserves and establish itself as a major player in the global iron ore market.
In an exclusive interview with the B&FT, following GIISDEC’s investor presentation at the recent Mining Indaba Conference in South Africa, Mr. Fordwor emphasised that his outfit is seeking joint ventures and partnerships across the full length of the iron ore mining value chain, including upstream mining, midstream processing, and downstream production of steel.
“Investors that have steel plants downstream can mine, process and use the ore for their steel production, providing an environmentally friendly raw material to produce steel in Ghana. The company is constantly exploring new developments and identifying potential areas for iron ore mining to ensure a sustainable and prosperous future for Ghana’s mining industry,” he added.
On the international platform, at the just-ended Mining Indaba held in Cape Town, South Africa, the CEO highlighted the need for the investor community to partner with the country to achieve the dream of an integrated iron and steel industry.
He revealed that the GIISDEC is targetting countries with extensive experience across the full value chain, such as India, South Korea, Australia, South Africa, Canada, China and Brazil, to explore potential collaborations in developing the domestic industry.
“Currently, there are ongoing mineral resource estimations (MRE) to determine the grade, quantity and tonnage of the various iron ore blocks in several reserve areas with the objective to commercialise existing deposits.
The establishment of partnerships with investors and the development of Ghana’s iron ore industry is a critical component of the government’s broader strategy to diversify the economy and create jobs.
The government recognises the potential of the industry to drive economic growth and development and is committed to providing the necessary support to ensure its success.
“We are confident that with Ghana’s political stability, economic growth, and corporate governance structures, we can establish strong partnerships with investors to unlock the full potential of iron ore mining. We will continue to engage with investors and provide updates on our progress as we work toward a sustainable and prosperous future for Ghana’s mining industry,” he said.