The Ghana Manganese Company is set to establish a $450 million manganese refinery plant within its mine in the Tarkwa enclave near Nsuta in the Western Region, a move expected to transform raw mineral exports into value added products.
Sun Yuanwei, Deputy Managing Director of Ghana Manganese Company (GMC), unveiled the refinery plans during a recent event celebrating the arrival of the largest bulk carrier vessel to dock in West African waters at Takoradi Port. The initiative involves collaboration with the Ghana Ports and Harbours Authority (GPHA) and Cosco Shipping Lines.
Yuanwei emphasized that the refinery represents a key element of GMC’s strategic approach to promote sustainable resource management, environmental responsibility, and strengthen local content development. He asserted the facility is expected to generate significant employment opportunities for young people and drive economic growth in Ghana.
The project, first announced publicly in August 2024, has progressed through various planning stages throughout 2025 as GMC worked with government ministries and its majority shareholder Tianyuan Manganese Industry, a Chinese company, to finalize technical and fiscal arrangements.
The refinery will upgrade manganese ore quality from the current 27 percent to approximately 40 percent, enabling production and export of various refined products including battery grade manganese, a key component for electric vehicle batteries and energy storage systems. This transformation represents a fundamental shift from Ghana’s century old practice of exporting raw manganese ore.
GMC owns and operates the Nsuta Manganese Mine, making it Ghana’s only manganese ore producer and exporter. The company has operated for 110 years with a 90 percent private ultimate shareholding by Ningxia Tianyuan Industry Company Limited and a 10 percent freehold shareholding by the government.
Kwabena Okyere Darko Mensah, the Member of Parliament for Takoradi, expressed strong support for the project, recounting the agreement made by the former New Patriotic Party government with GMC to establish the refinery. He stated that ships leaving Ghana’s shores should carry refined manganese rather than raw ore.
Darko Mensah cautioned that continued reliance on raw manganese exports would result in substantial revenue losses for the nation, urging a decisive move toward refining. His comments reflect broader policy shifts toward mineral value addition that have characterized Ghana’s mining sector strategy in recent years.
Nana Kobina Nketiah V, President of the Western Regional House of Chiefs, welcomed GMC’s plans, emphasizing that adding value to raw materials is crucial for enhancing government revenues, creating jobs, and fostering community development. He called on GMC to ensure timely delivery of the project to maximize its positive impact on local growth.
The refinery forms part of government’s broader value addition policy for the mining sector. Former Lands and Natural Resources Minister Samuel Abu Jinapor announced in August 2024 that government had concluded negotiations with GMC’s majority shareholder on the project, stating that President Nana Akufo Addo would cut the sod for construction to commence.
Initial plans indicated the project would be implemented in phases, with the first phase estimated at $240 million and scheduled for completion within two years. Phase one includes construction of a 45 megawatt natural gas power plant, a mechanic power transmission refinery, a dedicated mineral railway line, and optimization investment at Takoradi Port to enhance future export operations.
The second and third phases were projected to bring total investment to the full $450 million, though specific timelines for these subsequent phases have not been publicly detailed. The phased approach allows GMC to begin operations and generate revenue while completing the full scope of the facility.
Access to competitively priced natural gas emerged as a key requirement during project negotiations. Tianyuan Manganese Industry submitted proposals seeking gas prices around $4 per million British thermal units to ensure the refinery’s commercial viability. The company also requested production capacity increases from 5 million to 10 million tonnes annually to maximize economies of scale.
Ghana’s green minerals policy, approved by Cabinet and Parliament, provides incentives for investments that move higher up the value chain of the minerals industry. These incentives become available as companies transition from raw extraction to processing and refining activities that create greater domestic value.
The policy includes a minimum royalty rate of seven percent for green minerals and requires increased state and Ghanaian participation in green mineral operations to a minimum of 30 percent. Enhanced local content provisions include requirements for listing on the Ghana Stock Exchange.
Manganese represents one of Ghana’s significant mineral resources alongside gold, bauxite, and emerging lithium deposits. The country has exported manganese ore for over a century, primarily to refineries in China where it gets processed into various industrial and technological applications.
Battery grade manganese has gained strategic importance globally as demand for electric vehicles and renewable energy storage accelerates. The transition to refined exports positions Ghana to capture greater value from global supply chains for clean energy technologies.
The Western Region hosts substantial mineral deposits that have historically driven extraction industries. The Tarkwa area contains multiple mining operations extracting gold and manganese, creating an established industrial ecosystem with supporting infrastructure and skilled labor pools.
However, mining communities have also experienced environmental pressures and economic challenges despite proximity to valuable resources. Local stakeholders view value addition projects as opportunities to retain more economic benefits within Ghana rather than seeing raw materials shipped abroad for processing.
The arrival of the bulk carrier vessel celebrated alongside the refinery announcement demonstrates infrastructure improvements at Takoradi Port that support expanded mineral export operations. Larger vessels reduce per unit transportation costs and improve competitiveness for Ghanaian mineral products in global markets.
Port optimization forms a critical component of the refinery project since refined manganese products require reliable export logistics to reach international buyers. Investments in port facilities, mineral railway lines, and cargo handling equipment create integrated supply chains from mine through refinery to export terminals.
Implementation timelines for the refinery project have shifted since initial announcements in 2024. A sod cutting ceremony scheduled for November 21, 2024 did not materialize as planned, suggesting that technical, regulatory, or commercial negotiations required additional time to finalize.
The recent announcement by GMC’s Deputy Managing Director indicates renewed momentum for the project as parties work to commence construction. However, specific timelines for breaking ground and achieving operational status remain unclear pending completion of remaining approvals and arrangements.
Parliamentary processes including approval of the fiscal regime for the refinery were identified as outstanding requirements, though officials indicated these would not necessarily delay commencement once resolved. The complexity of large scale industrial projects often involves extended planning and approval phases before visible construction begins.
Mineral refining requires substantial technical expertise, specialized equipment, and quality control systems to produce materials meeting international standards. GMC’s partnership with Tianyuan Manganese Industry provides access to established refining technology and operational knowledge from China’s extensive manganese processing sector.
Technology transfer and skills development for Ghanaian workers represent important dimensions of the project’s local content objectives. Training programs will need to prepare employees to operate sophisticated refining equipment and maintain quality standards for battery grade and other high specification products.
The project’s $450 million investment scale positions it among significant industrial developments in Ghana’s mining sector. Successful implementation could establish a model for value addition in other mineral commodities where Ghana currently exports primarily unprocessed ores.
