Value Addition: GMC to Establish $450 Million Manganese Refinery

Value Addition: GMC to Establish $450 Million Manganese Refinery

Ghana’s economy is expected to rake in significant earnings for her transformation following the announcement of the establishment a refinery by the Ghana Manganese Company Limited (GMC) to add value to the country’s manganese exports.

The refinery estimated at $450 million will improve the grade of manganese ore mined in Ghana from 26.5% to over 40% through refining processes.

Additionally, a refinery would create more jobs whiles the reliance on raw material export will reduce greatly.
However, a major hinder to the refinery is the availability of reliable and affordable power supply.

Managing Director of the Ghana Manganese Company, Joseph Ampong who revealed these to Journalists for Business Advocacy under the auspices of the Chamber of Mines during a tour of operational sites of licensed mining companies in the Western region emphasized the crucial need for reliable power to ensure value addition to the commodity before export.

According to him an estimated 45,000MW of power supply is needed for the refinery to become a reality.
“If power is not available, we will not be able to set up the refinery and add value to the ore. This is crucial to the project. We are relying on Genser, which will provide gas-based power. Without it, our vision cannot be realized”, Mr Ampong stated.

Mr Ampong explained that the proposed manganese ore refinery needed a dedicated power source to function effectively since it cannot rely on power from the national grid due to the high energy demand nature.

The company he said is therefore working frantically to obtain natural gas from Ghana Gas Company at Atuabo to power a dedicated thermal plant for the refinery at an additional cost.

Another major challenge facing the company as mentioned by management is the lack of a functional railway system to haulage manganese from Tarkwa to the Takoradi port for export.
Management of GMC believes a functional rail-line would significantly cut short the 96 kilometers road transport of ore to 63 kilometers by rail to the port.

The GMC Boss also disclosed that the company in collaboration with central government is working to establish a dedicated railway-line to haulage ore produced to the port for export.

The first phase of the manganese refinery with a production capacity of 5 million tonnes per year estimated at USD 240 million is expected to create over 1,000 jobs.

Phase 1 will involve constructing a 45MW gas-powered plant and a refinery with a capacity of 2 million tonnes per annum will be completed within 24 months.

Sod-cutting ceremony for the first phase of the refinery is expected to take place in October 2024 even as government approves feasibility studies for the construction.

Economic Importance of Manganese

Manganese is a critical mineral used in various industries, including steel production, batteries, electronics, and construction.

Ghana’s manganese deposits, particularly in the Western Region, have been exploited for decades, with the majority exported in raw form especially to Ukraine and China.

The refinery’s value addition will significantly boost Ghana’s economy in several ways:

1. Increased Revenue: Processing manganese locally will generate more revenue than exporting raw ore. According to the GMCL, the refinery is expected to increase export earnings by at least 50%.

2. Job Creation: The refinery will create direct and indirect employment opportunities for Ghanaians, both during construction and operation.

3. Diversification: The refinery will reduce Ghana’s dependence on raw material exports, promoting economic diversification and resilience.

4. Local Content Development: The refinery will stimulate local content development, encouraging Ghanaian businesses to provide goods and services to the mining industry.

5. Technology Transfer: The refinery will facilitate technology transfer, enhancing Ghana’s technical capabilities and expertise.

By Christian Kpesese