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Forging a Path to Economic Diversification: Ghana’s $450 Million Manganese Refinery Project

Stephen M.Cby Stephen M.C
August 3, 2024
Reading Time: 4 mins read
Stephen M.Cby Stephen M.C
in Extractives/Energy, One Top Story
0
Forging a Path to Economic Diversification: Ghana’s $450 Million Manganese Refinery Project

The Government of Ghana is set to embark on a significant industrial project: the construction of a $450 million manganese refinery at Nsuta in the Tarkwa Nsuaem Municipality of the Western Region.

This initiative, which President Nana Akufo-Addo is soon to inaugurate, aims to enhance the quality of manganese produced in the country, a crucial step toward economic diversification and industrialization.

Lands and Natural Resources Minister Samuel Abu Jinapor announced the project, noting that negotiations with the majority shareholder of Ghana Manganese Company Limited had been successfully concluded.

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The refinery will upgrade the quality of manganese ore from the current 27 percent to approximately 40 percent. This upgrade will enable the production and export of various refined manganese products, including battery-grade manganese, which is essential for manufacturing electric vehicle batteries and energy storage systems.

Jinapor disclosed this development at the 8th University of Mines and Technology (UMaT) Biennial International Mining and Mineral Conference in Tarkwa. The event, themed “Innovations in Mining and Mineral Processing: Expanding the Frontiers of Mining Technology,” underscored the importance of technological advancements in the mining sector.

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Samuel Abu Jinapor

The Minister emphasized that the government’s commitment to value addition in critical minerals is a strategic move to diversify the economy and create jobs. By leveraging Ghana’s mineral wealth, the country aims to enhance its global competitiveness.

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“We believe this will result in economic diversification and job creation, and position the country to leverage her mineral wealth to drive industrialization and enhance our competitiveness on the global stage.”

Samuel Abu Jinapor

Investment in comprehensive geological investigations is crucial to identify and quantify Ghana’s critical mineral resources. This, Jinapor noted, would provide a foundation for a diversified and information-based mining sector. He also highlighted the need for infrastructure, technology, and human capital investment to support a robust minerals value chain.

Institutions like UMaT play a pivotal role in this ecosystem by promoting research and development. The minister stressed the importance of training individuals to acquire the necessary expertise to add value to minerals locally. Such training would foster innovations that make value addition more cost-effective and efficient.

Establishment of Policy and Regulatory Frameworks

The government’s commitment to this goal is also reflected in the establishment of policy and regulatory frameworks that incentivize investment in value-added activities. Jinapor highlighted the Green Minerals Policy approved by the Cabinet, which offers incentives for investments as one moves up the value chain. However, these incentives can only be fully utilized if Ghana develops the necessary technologies and innovations to make value addition competitive and cost-effective.

Mr Jinapor called for greater collaboration among industry regulators, players, academic institutions, private sector stakeholders, and international partners. He emphasized that value addition to critical minerals is not just a desirable goal but crucial for maximizing their benefits for national development.

“These minerals are not just commodities, but enablers of progress. Prioritizing their value addition will enhance our competitiveness in the mining industry, and contribute significantly to socio-economic development, and unleash the much-desired prosperity for our people.”

Samuel Abu Jinapor

The project underscores the importance of public-private partnerships in driving investments in smelting, refining, and manufacturing. Jinapor urged all stakeholders to collaborate to unlock the full potential of Ghana’s mineral wealth, ensuring prosperity for all citizens.

UMaT Vice-Chancellor Professor Richard Kwasi Amankwah also addressed the conference, highlighting its role in providing a platform for researchers, engineers, academics, and other stakeholders to discuss innovations in mining. The conference featured about 20 presentations focused on advancing the minerals industry, a critical concern for the university.

Meanwhile the $450 million manganese refinery at Nsuta represents a strategic initiative by the Ghanaian government to enhance the country’s economic diversification and industrialization efforts. Through value addition to its critical minerals, Ghana aims to secure a competitive position on the global stage, fostering socio-economic development and prosperity for its people.

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Tags: diversificationElectric VehicleExportGhana Manganese Company LimitedManganese Refinery ProjectTarkwa Nsuaem Municipality
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