Adnan Adams Mohammed
The US$450 million joint venture (JV) manganese refinery project involving the Ghana Manganese Company (GMC) and Ningxia Tianyuan Manganese Industry Group (TMI) is set to be ready next month, August 2024, the Mineral’s Commission have said.
The Government of Ghana and the Chinese manganese company signed a strategic partnership agreement in March 2024 after President Nana Akufo-Addo announced the intention to construct a manganese ore refinery near GMC’s Nsuta mine in the Western region during the 2024 State of the Nation Address (SONA). The refinery, is to add value to the country’s manganese production while expanding the benefits from the resource to the citizen through job creation and expanding the economy.
The project is expected to increase Ghana’s manganese revenue with a new refinery. He emphasized the positive economic impact, noting that the refinery will also create approximately 400 jobs for the Ghanaian youth.
“Ghana has been exporting raw manganese since 1916, the current government is focused on ending this practice and adding value locally”, Chief Executive Officer of the Minerals Commission, Martin Ayisi, has moted when speaking at the 7th Annual Mining on Top Africa Summit in Paris-France last week.
Mr. Ayisi discussed the topic: “Mining Partnership for Long-Term Successful Projects: Meeting Obligations and Exploring New Avenues.” He highlighted the government’s commitment to initiating construction of the refinery in August 2024, underscoring that Ghana, through its Ministry of Lands and Natural Resources, is dedicated to transforming the mineral sector.
Also, there are plans to establish a lithium mine by the end of 2024, with the project expected to take 22 months to complete. This will further enhance local processing capabilities and add value to Ghana’s mineral resources.
Mr Ayisi urged other African countries to follow Ghana’s lead in local participation in mineral resource projects. He advocated for policies that allow local citizens to benefit from the value chain, even suggesting local ownership of shares in mining companies. While emphasizing on the importance of stable governance for long-term partnerships, advising investors to consider a country’s regime and practices before committing.
According to data from Statista, in 2022, an estimated volume of 3.2 million metric tons of manganese was produced in Ghana. This stood against the 5.4 million metric tons produced in 2019, which was the highest since 2009. Moreover, except for the major drop in 2014 and 2020, manganese production in the country followed an upward trend.
Ghana is one of the leading world producers of manganese. As of August 2023, the price of manganese in the country reached around US$51 per metric ton.
In 2023, Ghana was the fourth-largest global producer of manganese ore, exporting over 4Mt. Notably, the country lacks refining capacity, with 95% of its ore being exported to China. The potential to extract additional value from its resources is contingent upon infrastructure investments from industry players, such as TMI, according to Project Blue data.
Ningxia Tianyuan Manganese Industry, a diversified industrial group involved in ore mining, metallurgy, and chemicals, holds a significant share in Consmin, overseeing the Nsuta mine in Ghana and the Woodie Woodie mine in Australia. TMI stands as the largest manganese metal producer and has plans to establish a 1Mt HP MSM production line in China.
TMI’s involvement in both the EV battery and alloy sectors suggests a strategic investment in its current supply chain. This positions GMC to potentially develop a production line with a lower carbon footprint, aligning with the government’s broader objectives for a green transition.
