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By Stephen Asante\u00a0<\/p>\n
Accra, Oct. 07, GNA \u2013 Mr Henry Antwi, an Australian-based Ghanaian Mining Consultant and Mineral Economist has called for due diligence in a bid to promote investment for the development of Ghana\u2019s iron and steel.\u00a0<\/p>\n
\u201cIt is laudable to promote Ghana\u2019s mineral and metal potential at international conferences, however, we need to get back to the drawing board and first re-evaluate our strategy to secure good commercial terms for the nation,\u201d he argued.\u00a0<\/p>\n
From his perspective, the government should strive to engage the services of a competent and qualified institution or person in iron ore exploration and geological resource estimation to lead the exploration campaign for the Ghana Integrated and Steel Development Corporation (GISSDEC).\u00a0<\/p>\n
Mr Antwi made the call in a document presented to the Ghana News Agency (GNA), Accra, on his views on the nation\u2019s campaign to woo investors for Ghana\u2019s iron ore exploration.\u00a0<\/p>\n
According to him, it was appropriate that \u201cwe moved Ghana\u2019s iron ore potential to a minimum of indicated resource under the Joint Ore Reserves Committee (JORC) Code, a professional code of practice that sets minimum standards for public reporting of mineral exploration results, mineral resources, and ore reserves, or any of the internationally accepted codes.\u00a0<\/p>\n
\u201cGetting the resource to indicated category and complying with an international quality assurance and quality control standard will engender confidence in investors,\u201d he emphasized.\u00a0<\/p>\n
Additionally, getting the resource estimated under an internationally accepted code, by a competent person, is also a corporate disclosure requirement should public listing be considered for raising capital.\u00a0<\/p>\n
This will ensure that pre-feasibility studies are completed to determine the economic and technical viability, coupled with a better understanding of the quality and contaminant levels of the iron ore, and to determine the ideal route for value addition.\u00a0<\/p>\n
\u201cOnce this is established with transparency and corporate governance principles, GIISDEC can then develop an information memorandum to potential local and international investors to tender on a competitive basis,\u201d Mr Antwi stated.\u00a0<\/p>\n
With this in place, it would then allow the government to dictate the transaction terms, having de-risked the project, and this would ensure a reasonable entry fee payment by the joint venture partner, the Mining Consultant and Mineral Economist advised.\u00a0<\/p>\n
In his analysis, he indicated that it made more economic sense to develop the iron ore into pellets than the steelmaking route being considered.\u00a0<\/p>\n
\u201cThis is because the high capital cost and price of gas-based energy did not make steel making economically attractive as compared to a pelletizing plant at the time of evaluation.\u00a0<\/p>\n
\u201cThe capacity of the pelletizing plant could be easily expanded to feed both international and domestic steel-making plants when the economics make it justifiable for a domestic plant,\u201d Mr Antwi said.\u00a0<\/p>\n
He stressed that consideration is given to the capital requirements, quantum of gas and price, and the overall economics when deciding on a steel plant versus pelletizing plant at the initial stage.\u00a0<\/p>\n
Later, the government can consider the addition of steel-making using cash flow from the pellet plant as part of the funding strategy for the steel plant.\u00a0<\/p>\n
In his submission, the Mining Consultant and Mineral Economist stressed that iron ore beneficiation plant and steel-making technologies should be assessed as part of the pre-feasibility study and the best technical and economic option taken through the detailed feasibility stage with the joint venture partners.\u00a0<\/p>\n
He said the selected joint venture partner should have a proven record of accomplishment in iron and steel making to derive good returns for the country.\u00a0<\/p>\n
GNA\u00a0<\/p>\n