By Joshua Worlasi AMLANU
A US$600million iron ore project is set to commence by the end of 2025. The initiative aims to reduce the country’s reliance on imported steel products.
Ghana has significant iron ore reserves, estimated at 1.7 billion tonnes primarily located in regions like the Savanah and Oti, with an iron content exceeding 55 percent. Despite this potential, the country currently imports 800,000 metric tonnes of iron and steel annually, costing approximately US$900million.
The project will be led by Emmerland Resource Limited, a local company with the necessary licences to begin mining operations at the Shieni iron ore deposit in the Northern Region.
Williams Okofo-Dateh, Chief Executive Officer-Ghana Integrated Iron and Steel Development Corporation (GIISDEC), in an exclusive interview with B&FT said the Shieni project is positioned to become a cornerstone of the economy.
The initiative comes after decades of attempts by successive governments to establish an iron and steel industry in the country.
“The corporation’s mandate is to ensure development of the steel industry in Ghana and we are working closely with Emmerland Resource Limited to make this project a reality,” Mr. Okofo-Dateh said. “After years of groundwork, we are finally at a point where we can confidently say that the iron ore industry will take off this year.”
The Shieni iron ore deposit has long been recognised as one of the country’s most significant mineral resources, with an inferred resource of 1.312 billion tonnes grading 33.8 percent iron content. In comparison, the Opon-Mansi deposit in the Western Region has an estimated 147 million tonnes with a higher iron content of 52.5 percent.
Despite the discovery, no substantial progress had been made until the recent efforts by GIISDEC to attract private sector investment.
Mr. Okofo-Dateh explained the scale of financial commitment required to launch a full-scale steel manufacturing plant: “Setting up even a small steel plant requires about US$100million”.
“To fully develop the industry, you need between US$300million – US$600million and that’s why finding the right investor with the financial capacity is critical,” he added.
According to Okofo-Dateh, the project’s long-term success will hinge on quality and quantity of the iron ore deposits, which preliminary studies have shown to be promising.
“For any investor to commit in a project of this scale, they must be assured of the mineral’s availability for at least 20 to 30 years. The resource estimate confirms that we have the reserves to sustain long-term production,” he stated.
Ghana currently relies heavily on imported steel products, with major supplies coming from China and Turkey. According to the CEO, apart from ‘iron rods and angle bars’ nearly all steel-related materials – including construction steel requirements, components of vehicle frames, roofing sheets and several other steel articles – are imported due to lack of a domestic production facility to process iron ore.
In 2023, Ghana imported US$527.51million worth of iron and steel, according to the United Nations COMTRADE database. Specifically, US$35.6million was spent on steel bars – making Ghana the 24th largest importer of steel bars globally. The primary sources of steel bars were China (US$17.2million), South Africa (US$11.6million), and Malaysia (US$6.76million). Additionally, Ghana imported US$364million articles of iron or steel, accounting for 2.22 percent of total imports.
Other notable imports included US$717k in chains of iron or steel, primarily from France (US$338k) and China (US$155k).
However, Ghana’s steel industry has a surplus production capacity of 650,000 metric tonnes annually, which could be leveraged to reduce reliance on imports and boost exports.
The local steel sector supports 4,500 direct jobs and contributes significantly to tax revenues, highlighting its potential to enhance economic growth if supported by policies like the Ghana Integrated Iron and Steel Development Act 2019 (ACT 988) and National Export Development Strategy (NEDS).
“Everything you see around – buildings, bridges, electrical poles and even the vehicles on our roads – are made up of steel. Unfortunately, we don’t have an industry that processes iron ore locally and that means we must import almost everything, ” the CEO said.
The partnership with Emmerland Resource Limited is expected to change that dynamic. Mr. Okofo-Dateh disclosed that the company, led by CEO Emmanuel Ababu, has demonstrated both technical and financial readiness to commence operations.
“We visited Mr. Ababu and he provided comprehensive documentation to show that he is fully prepared to develop the site,” Mr. Okofo-Dateh revealed. “He shared evidence of mineral resource estimates certified by international bodies and assured us that raising the necessary capital will not be a problem.”
The project has also received backing from traditional authorities in the region. During a recent visit to Yendi, Northern Region, the local chief appealed to President John Dramani Mahama to prioritise development of the Shieni iron ore deposit. Mr. Okofo-Dateh believes the project will meet both local and national expectations.
“The chief’s call to the president reflects the urgent need for job creation and regional development. This project will not only create employment but also open up the area economically and generate revenue for the state,” he noted.
Beyond job creation, the Shieni iron ore project is expected to reduce Ghana’s dependence on steel imports and position the country as a regional hub for steel production.
GIISDEC, established by an act of parliament in 2019, is tasked with overseeing the country’s efforts to develop an integrated iron and steel industry. The corporation has since worked to identify viable iron ore deposits and engage potential investors.
Mr. Okofo-Dateh stressed that Ghana’s transition to a steel-producing nation requires not only financial resources but also sustained commitment from both the public and private sectors.
“This is an industry Ghana has never had,” he said. “Previous governments tried and failed, but we are closer than ever to making it a reality. With the support we are providing and the readiness of our partners, I am confident that 2025 will mark the beginning of a transformative period for Ghana’s industrial landscape.”
A successful launch of the Shieni iron ore project is anticipated to attract further investments into the broader iron and steel value chain.
