A $600 million iron ore mining project is set to launch in Ghana’s Northern Region by late 2025, marking the country’s latest bid to reduce its dependence on imported steel and capitalize on untapped mineral reserves estimated at 1.7 billion tonnes.
Led by local firm Emmerland Resource Limited, the initiative targets the Shieni iron ore deposit, a site with 1.3 billion tonnes of ore averaging 33.8% iron content, as part of broader efforts to establish Ghana’s first integrated iron and steel industry.
The project, backed by the state-owned Ghana Integrated Iron and Steel Development Corporation (GIISDEC), aims to curb annual steel imports exceeding 800,000 metric tonnes, which cost the nation nearly $900 million in 2023. Despite possessing significant deposits in regions like Shieni and the higher-grade Opon-Mansi site (52.5% iron content), Ghana currently imports 98% of its steel products, including construction materials and machinery components, primarily from China and Turkey.
“Developing this industry demands investors willing to commit $300 million to $600 million, with assurances of a 30-year resource lifespan,” said GIISDEC CEO Williams Okofo-Dateh. “Our reserves meet that threshold, but financing remains the critical hurdle.”
Emmerland’s Shieni operation, which secured mining licenses after years of regulatory delays, will initially focus on extraction, with plans for a processing plant to follow. Success could position Ghana to leverage its estimated 650,000-tonne annual steel production surplus for regional export, though analysts caution that infrastructure gaps and energy costs pose challenges.
Ghana’s push mirrors broader African ambitions to add value to raw mineral exports rather than shipping unprocessed ore. The Shieni project aligns with the government’s 2022 Minerals Development Policy, which prioritizes domestic processing to spur industrialization. Yet historical setbacks loom: multiple administrations since the 1970s have failed to operationalize steel plants despite similar pledges.
The economic stakes are high. Steel imports drained $527 million in 2023, per UN Comtrade data, even as global prices fluctuated. With construction driving 60% of domestic steel demand, officials argue local production could cut costs for infrastructure projects and boost mining sector jobs, which currently account for 5% of GDP.
However, Emmerland’s capacity to attract partners remains untested. While Ghana’s political stability appeals to investors, the project’s scale requires sustained investment amid tight global capital flows. Neighboring Liberia’s $800 million ArcelorMittal expansion—a rare regional success—highlights both the potential and risks of capital-intensive mining ventures in West Africa.
Environmental concerns also persist. Shieni lies near ecologically sensitive areas, and Ghana’s record on mining regulation remains mixed. For now, the government appears willing to prioritize economic gains, betting that steel self-sufficiency could offset trade deficits and anchor long-term industrial growth.
