Ghana is on track to build a $450mn manganese refinery, the country's first, through a strategic partnership between the government and a Chinese manganese company, announced Martin Ayisi, chief executive officer of the Minerals Commission. 

The refinery will be established by Ningxia Tianyuan Manganese Industry Group Company Limited (TMI), the Chinese parent company of Ghana Manganese Company (GMC), near the latter's Nsuta mine in the Western region.

This initiative is part of a broader strategy by the Ghanaian government to add value to green minerals, particularly manganese, essential for manufacturing batteries used in EVs.

It aims to enhance the value of Ghana’s manganese production and increase its revenue from manganese from the current 27% to nearly 40%, reports Citi News.

“This project will not only increase our revenue but also significantly impact our economy by providing employment opportunities," Ayisi said at the 7th annual Mining On Top Africa (MOTA) summit in Paris. The government plans to initiate construction of the refinery in August 2024, demonstrating its commitment to transforming the mineral sector.

In 2023, Ghana was the fourth-largest global producer of manganese ore, exporting over 4mn tonnes. However, the country lacks refining capacity, with 95% of its ore being exported to China.

TMI, a diversified industrial group involved in ore mining, metallurgy, and chemicals, holds a significant share in Consmin, overseeing the Nsuta mine. Its involvement in both the EV battery and alloy sectors suggests a strategic investment in its current supply chain.

Highlighting the shift from exporting raw manganese, a practice since 1916, Ayisi said the current government is focused on adding value locally.

Additionally, plans to establish a lithium mine by the end of 2024 were disclosed, with the project expected to take 22 months to complete, further boosting local processing capabilities, writes Citi News.

Ayisi urged other African countries to adopt similar strategies for local participation in mineral resource projects, advocating for policies that allow local citizens to benefit from the value chain and suggesting local ownership of shares in mining companies.

He also underscored the importance of stable governance for long-term partnerships, advising investors to consider a country’s regime and practices before committing.