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Ghana’s efforts to diversify its mineral resource base have received a major boost, as preliminary exploration in the Oti Region points to commercially viable iron ore deposits.
The Ghana Integrated Iron and Steel Development Corporation (GIISDEC), in collaboration with its technical partner, Africa Exploration and Minerals Group (AEMG), has been undertaking exploration in the Gyamurume community of the Kadjebi District since 2020.
According to initial findings, the ore deposits could be among the highest quality in West Africa. GIISDEC officials, during a recent field inspection, reported sighting oxidised iron ore with iron oxide content reaching up to 82 percent—equivalent to approximately 57 percent pure iron. On average, the oxidised ores contain about 67 percent iron oxide, or 47 percent iron.
These are just early results, but what we are seeing is very promising
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Investor Interest Rising Amid Promising Grades
Mr Darteh added that if subsequent laboratory analyses confirm the preliminary data, the ore quality could surpass that of existing mining operations across Africa. This potential has already attracted investor interest.
"Investors have shown considerable interest, but we are prioritising data accuracy and thoroughness before entering into any serious agreements. We’re not rushing; we want to get it right," he remarked.
Drilling programme and geological potential
Exploration work has so far employed remote sensing and geophysical surveys. AEMG identified 11 drilling targets from an initial 54 prospective areas. Drilling commenced in mid-2024, with eight out of the planned 30 drill holes completed to date.
The comprehensive drilling plan spans 15 lines across a 2,500-metre stretch and is expected to conclude by June 2025. A complete resource estimate is slated for release in September.
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Franklin Mace, AEMG’s chief geologist, revealed the team had encountered consistent formations.
We are hitting banded iron formations that are averaging about 30 metres in width. Additionally, we’ve discovered serpentinite rocks, suggesting possible nickel deposits—an unexpected but potentially valuable bonus
Geological mapping has uncovered approximately 42,000 square metres of fully oxidised ironstones and 36,000 square metres of partially oxidised ores. These deposits extend over an 8-kilometre north-south belt with a steep eastern dip. The fractured terrain may ease access to the ore.
Over 100 rock samples have undergone analysis at Intertek Laboratory and the University of Ghana. Results have confirmed a high iron content in the area.
Professor Frank Nyame, lecturer at the University of Ghana and technical advisor to the project, highlighted the importance of determining depth and volume.
It appears at the surface, but we need to establish how deep the deposit runs. That’s why drilling is essential—to determine the scale of the resource
Full value chain ambitions
Mr Darteh indicated that GIISDEC plans to use the final data to attract strategic investors with a focus on building a domestic iron and steel industry. This would reduce Ghana’s dependency on gold and cocoa exports.
This could be transformational. If everything stays on course, we’ll have a full resource estimate by September 2025. From there, we’ll begin the next phase
Ghana currently holds an estimated 1.7 billion tonnes of iron ore reserves, including Shieni (1.3 billion tonnes at 33.8% Fe) and Opon-Mansi (147 million tonnes at 52.5% Fe). A $600 million project at Shieni is scheduled to commence in late 2025, aiming to reduce the nation’s $900 million annual steel import bill. The goal is to process iron ore domestically by 2027, driving industrialisation and job creation.
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Local leaders are also backing the project. Osaberima Osei-Bonsu V, paramount chief of the Asato Traditional Area, expressed enthusiasm.
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This is real mining—the first of its kind in this region. Unlike illegal mining, this project holds the promise of genuine benefits for our people, including employment and development
Although the team faces logistical difficulties due to challenging terrain, GIISDEC is committed to pushing forward. It is working with local contractors like BobJosh Drilling Company and international consultants such as SRK to navigate the region’s rugged landscape.
We are addressing access and equipment issues as they arise
If successful, the iron ore project could form the cornerstone of a new industrial sector in Ghana, furthering the nation’s economic diversification and industrial ambitions.