The sod for the commencement of the $450-million project will be cut on November 21, this year, to pave the way for phase one to start.

The project, which is part of the vision of the company to transition from exportation of the current low-grade carbonate manganese to high-grade through value addition, is being undertaken by the GMC in collaboration with its majority shareholder, Tanyun Manganese Industry Group (TMI), a Chinese company.

The first phase of the project, estimated to cost $240 million, will be completed within two years, and will involve the construction of a 45-megawatt (MW) natural gas power plant and a mechanic power transmission refinery.

The scope of work of phase one will include a dedicated mineral railway line and optimisation investment at the Takoradi Port to enhance the future export operations of manganese ore.

The second and third phases will take the total investment in the refinery to $450 million.

This came to light when the Minister of Lands and Natural Resources, Samuel A. Jinapor, led a team of experts from the ministry and the Minerals Commission to learn at first hand the operations of the company.

The minister’s entourage included the Advisor on Mines at the ministry, Benjamin Aryee, and the Chief Executive Officer (CEO) of the Minerals Commission, Martin Kwaku Ayisi.

Milestone

Mr Jinapor explained that although some parliamentary processes, including the approval of the fiscal regime for the refinery, were required, they would not impact the commencement of the project.

The Manganese extraction plant at the site of Ghana Manganese Company Ltd

He described the project as a major step towards achieving the government's overarching objective of building a robust regime for value addition in the mining sector.

"This Manganese refinery project is not only a milestone of significance for the GMC but for the country. We commit to work together to build this refinery for our mutual benefit and for economic prosperity," he said.

The minister added that when completed, the refinery would lead to the creation of hundreds of jobs for the local people and boost socio-economic development.

The Managing Director of GMC, Jurgen Eijgendaal, said the company was committed to make the necessary investment that would facilitate the transition to value addition.

He said as the only manganese producing and exporting entity in the country, GMC would adhere to all regulatory requirements for the establishment and operation of the refinery to ensure its maximum benefit to the country.

Mr Eijgendaal said as part of the comprehensive strategy for investment along the value chain, the company would invest in the rail system to the Takoradi Port to facilitate the haulage of its products.

Background

The GMC owns and operates the Nsuta Manganese Mine.

It is the only manganese ore producer and exporter in the country, with a 90 per cent private ultimate shareholding by Ningxia Tianyan Industry Company Ltd (TMI) and a 10 per cent freehold shareholding by the government.

The company has been in operation for 110 years.

The method of ore extraction is by open-pit mining, which consist of drilling, blasting, loading and hauling, pit dewatering, surveying and grade control.

Although historical mining operations gave rise to seven pits, the current development has merged all the satellite pits into one super pit, now referred to as Pit C, thus limiting the pit number to only three.