Preliminary exploration data from the Oti Region indicates substantial commercial viability for iron ore deposits, potentially adding significantly to Ghana’s resource portfolio. This finding has a lot of potential because the demand for iron ore is expected to increase by 3% a year due to industrial and construction demands.
In the Gyamurume community of Kadjebi district, exploration activity has been carried out since 2020 by the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) and its technical partner, Africa Exploration and Minerals Group (AEMG). These iron ore resources may rank among the best in West Africa, according to preliminary data. Officials from GIISDEC recently visited a field site and saw oxidized iron ore with a high iron oxide percentage. According to preliminary statistics, some samples include up to 82 percent iron oxide, which is equivalent to roughly 57 percent iron. The oxidized ores typically contain 47 percent iron, or around 67 percent iron oxide.
“These are just early results, but what we are seeing is very promising,” William Okofu Darteh, Chief Executive Officer-GIISDEC, told B&FT. He added that if confirmed, these grades could surpass those of deposits currently mined in other parts of Africa, attracting the interest of potential investors. Exploration efforts have included remote sensing and geophysical surveys, enabling AEMG to identify 11 drilling targets from an initial 54 areas. Drilling began in mid-2024, with eight of the planned 30 drill holes already completed. The full drilling program, covering 15 drill lines and exploring a 2,500-meter area, is expected to be completed by June 2025, followed by a comprehensive resource estimate by September.
Consistent Results Confirming Discovery
Franklin Mace, chief geologist at AEMG, reported consistent results from the drilling, stating, “We are hitting banded iron formations that are averaging about 30 metres in width. What’s more we have also found serpentinite rocks, which could point to the presence of nickel. That was unexpected but could add more value to the project.” Geological mapping has identified approximately 42,000 square meters of fully oxidized ironstones and 36,000 square meters of partially oxidized deposits, extending over an 8-kilometer area. Over 100 rock samples have been tested by Intertek Laboratory and the University of Ghana, confirming high iron content.
Prof. Frank Nyame, a lecturer at the University of Ghana and technical advisor to the project, emphasized the importance of drilling to confirm the ore’s depth and consistency. Mr. Darteh stated that upon completion of drilling and resource estimation, GIISDEC will use the data to attract investment, aiming to develop a full value chain for iron and steel production in Ghana and reduce the country’s reliance on gold and cocoa exports. “This could be a game-changer. If everything goes as planned, we could have a full resource estimate by the end of September 2025. From there, we will know exactly what we have and we can move to the next stage,” he concluded.
Existing Iron Ore Reserves In Ghana
Ghana possesses significant iron ore reserves, estimated at approximately 1.7 billion tonnes. Key deposits include Shieni (1.3 billion tonnes at 33.8% Fe) and Opon-Mansi (147 million tonnes at 52.5% Fe). A US$600 million mining project at Shieni in the Northern Region is slated to commence in late 2025, with the goal of reducing the nation’s US$900 million annual steel imports. By 2027, Ghana intends to process iron ore domestically to produce steel, focusing on value addition and job creation within the country.
The local community is invested in the project’s success. Osaberima Osei-Bonsu V, paramount chief of the Asato Traditional Area, has voiced his support, stating, “This is actual mining, the first of its kind in the region. We have seen the difference between this and illegal small-scale mining. We are engaging with the companies involved and expecting that our people will benefit through jobs and other opportunities.”
Potential Challenges Reported
Despite logistical challenges related to the terrain, the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) remains dedicated to the project’s progression. GIISDEC is collaborating with consultants like SRK and state institutions, such as the Ghana Geological Survey Authority, to ensure effective oversight. Local drilling contractor BobJosh Drilling Company is providing portable rigs to aid navigation in the challenging terrain.
GIISDEC acknowledges the obstacles, noting, “We know there are difficulties, especially with access roads and moving equipment. But we are addressing those issues as they come.”
If realized, the project has the potential to establish a foundational industrial sector for Ghana.
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