Ghana Manganese Company mulls $450m refinery to boost revenue, create jobs

The Ghana Manganese Company (GMC) is set to embark on the construction of a value-addition refinery to process low-grade carbonate manganese into higher-value products. This project aims to enhance the marketability of manganese, boost revenues, and increase foreign exchange inflows for the company.

Phase one of the refinery project will cost $240 million and is expected to be completed within 24 months. This phase includes building a 45MW natural gas-powered plant and a refinery capable of processing two million tonnes of manganese annually. The initiative will also introduce advanced industrial technology to Ghana’s mining sector, making it a pivotal step in the country’s industrialization efforts.

The project’s scope extends beyond the refinery itself, with investments planned for a dedicated mineral railway line and improvements at the Takoradi Port to optimize the export of manganese ore. Phases two and three of the refinery will bring the total investment to $450 million.

Joseph Ampong, General Manager of GMC, speaking during a media tour organized by the Ghana Chamber of Mines, emphasized the significance of the project for the future of the mine. He highlighted that the refinery would create over 1,000 direct jobs and significantly boost GMC’s revenue. The company plans to increase its manganese output to 8 million tonnes per year, with 5 million tonnes processed locally.

Ampong noted that while the project had faced delays in the past due to power supply challenges, new interventions are being introduced to ensure its success. The refinery will require about 45,000 megawatts of power, and GMC has partnered with Genser Energy to meet this demand using gas from Atuabo.

He explained that refining manganese ore would increase its grade from 26.5% to over 40%, improving its market value. Manganese plays a crucial role in the steel industry, which accounts for 75% of global demand, with other uses including batteries and fertilizers.

Ampong added that the shift towards renewable energy and electric vehicles is expected to drive future demand for manganese, lithium, and other critical minerals. He noted that GMC is well-positioned to benefit from this transition, as manganese is a key component in electric vehicle batteries.

However, the company has faced challenges due to the ongoing Russia-Ukraine conflict, as Ukraine was a significant export market for GMC. To mitigate this, the company is exploring new markets globally to sustain its operations.