Iron ore, bauxite hold prospects

Ghana is in search of investors to exploit its vast iron ore and bauxite resources, a Principal Mining Officer at the Minerals Commission, Jerry Ahadzi, has said.

“This iron ore and bauxite have already been discovered and in huge deposits which are commercially viable, so all we need is investors who are ready to mine and help develop the entire value chain. These investors will be expected to lead in developing the entire value chain for these mineral resources.”

 

Mr. Ahadzi was speaking on the potential for the mining industry in Ghana at the ongoing International training course for journalists on the natural resources sector, organised by the Natural Resources Governance Institute (NRGI) in Accra.

He explained that just as for the entire continent, only between 10 and 20 percent of the country’s entire mineral resources have been discovered and are currently being exploited.

At Sheini near Tamale, 616 km north of the capital in the Northern Region alone, the official confirmed that there is a proven reserve of 1.27 billion metric tonnes of iron ore; while at Oppon Manso in the Western Region there is 150 million metric tonnes; and at Pudo in the Upper West Region, five million metric tonnes.

The Oppon Manso iron ore reserves were discovered by the Ghana Geological Survey in 1963, located on 15 hills over a 24km strike. 

The Geological Survey reported a mineralised estimate to 10m depth of approximately 150 million long tonnes with an iron content between 43-56 percent.

Ahadzi said there are also reserves of iron ore in Akpafu, 234 km north-east of the capital which need more geological work to establish. According to him, this particular ore deposit might be easier to find since the locals have used it in the past for making pots and farming tools.

He said the 200 million metric tonnes of iron ore deposits in Kibi, 92 km north of the nation’s capital, can however not be developed at the moment as it occupies a forest reserve and the source of the Birim River, which is the main source of treated water for the capital.

The official said investors in iron ore mining will be expected to provide the leadership in converting iron ore into steel for use by local steel companies, which now depend on scrap to manufacture their products, and then export the rest.

“Beside the iron ore deposits, we also have 700 million metric tonnes of bauxite at Nyirahin, near Kumasi, 218 km north of the capital -- beside the Prestea Bauxite mines,” Ahadzi disclosed.

The government’s new policy for using bauxite is to stop exporting raw bauxite and ensure that the ore is processed into alumina for use by local aluminum companies.

He said due to high energy consumption in the bauxite-aluminum industry, prospective bauxite miners in the country will be expected to provide their own means of electricity for developing the entire value chain.

The Volta Aluminum Company (VALCO) is the largest aluminum company in Ghana, founded by Kaiser in 1961 but now wholly owned by the government of Ghana -- with a smelting capacity of 200,000 metric tonnes per year of ingots.

After its shut-down in 2007, the company has since 2011 been producing 3000 tonnes per month, mostly for local consumption, with plans to activate a second pot-line to bring monthly production up to 6,000 tonnes in the expectation that local bauxite development will accrue to the benefit of such local smelters.

Head of External Relations and Communications at the Ghana Chamber of Mines, Ahmed Nantogmah, urged government to showcase these industrial mineral reserves to industry players across the world in order to attract investments.

Natongma explained that mining firms in the country are mostly in for gold mining, and so there is a need to seek mining firms that will be interested in the development of industrial metals.