Former Minister for Power, Dr. Kwabena Donkor, is seeing great potential in the country’s iron ore deposits, should a proper strategy be put in place, and the country also learn lessons from how gold has been managed.
For years, Dr. Donkor has observed that Ghana’s mining spotlight has overly relied on gold, although its management has been questionable. But the former Member of Parliament for Pru East says Ghana’s next big opportunity may lie not in gold, but in iron.
He emphasizes that the country has significant deposits of iron ore in Oti, Sheni, and Opon Mansi, among other places, adding that more deposits are being found.
In an exclusive interview with The High Street Journal, he maintained that the evidence is clear that this is a massive opportunity waiting to be developed. He added that these deposits often come with valuable by-products like silver, a detail that strengthens the economic potential of Ghana’s iron mining sector.
The Lessons from Gold
But for Dr. Donkor, the real challenge lies not in finding the iron, but in how Ghana decides to manage it. To harness the full potential of the iron ore deposits, he insists that it should not be business as usual.
The country, he says, must not attempt to exploit its iron ore with the same strategy currently used to manage gold. To him, it is unacceptable that Ghana, one of the world’s top gold producers, has for decades exported the raw metal with little domestic value addition
“What is the effort that we are putting in as a nation-state to develop these resources in a manner that does not replicate what we have done with gold?” he quizzed.
For him, it will be an affront if the country treats iron ore the same way it has treated gold.
From Ore to Steel – The Real Value
Dr. Donkor believes Ghana must take a different approach, which is focused on value addition.
According to the mining consultant, although the iron deposit holds immense potential, without value addition, raw exportation, as in the case of gold, will mean the country will not reap the full benefits.
“That is our next huge opportunity. The strategy is for us not to export the ore. The strategy will be for us to turn the ore into steel products for our building industry, for export, and for industrialisation,” he noted.
Dr. Donkor acknowledged the huge capital-intensive nature of developing the iron industry. However, he is optimistic that, with careful structuring and smart capital mobilisation, the country can surmount that.
“But that will require some amount of capital,” he noted, adding that “Capital is available internationally. It’s just how we structure our involvement. If we structure it well, the benefits of iron ore, a large percentage of the benefits will be retained in the Ghanaian economy. We have to structure that well.”
He envisions an integrated iron and steel industry that feeds local construction, manufacturing, and export markets, helping Ghana achieve long-term industrial transformation.
The Power Question
He further admitted that the iron industry also requires huge power. He says transforming iron ore into steel is energy-intensive, and it’s one of the hurdles Ghana must overcome.
“It comes with a challenge: power,” Dr. Donkor acknowledged. “In many countries, power is subsidised for the iron and steel industry because the taxes and other revenues that come in will make up for the subsidy.”
He argued for a deliberate energy policy that supports industrial growth rather than stifles it with high tariffs. One solution that can be considered is dedicating a portion of the country’s gas from the oil fields to power the furnaces. He believes this approach will be cheaper than using grid electricity.
‘If we were to dedicate a portion of our gas find to fire that furnaces, we have to calculate the cost. How much will it cost? It will definitely be cheaper than using grid electricity. But how cheap? And if there’s a need for subsidy, the subsidy must be deliberate. And the subsidy must be recouped from the gains of the industry in the form of taxes and other tail-end products,” he explained.
The Nuclear Vision
Looking further ahead, Dr. Donkor also spoke about the role nuclear energy could play in powering Ghana’s industrial ambitions. “I am a believer in nuclear power,” he said, “but in nuclear power terms, the short term is about 10 years. To get all the regulatory requirements and studies done takes time. Do we have to wait?”
He insists that Ghana needs a long-term, consistent plan that aligns its mining ambitions with energy and industrial policies.
A Call for a Comprehensive Mining Policy
Dr. Donkor believes that the time has come for the country to develop a comprehensive national mining policy. The country, he says, must be very deliberate and attentive to mining and not leave the sector to chance.
“We have to take mining far more seriously. Our mining policy must be comprehensive. We should look beyond gold,” he emphasized.
Ghana’s iron ore deposits, he says, are not just another resource find. They are a second chance at getting mining right with the right strategy that will retain value in the Ghanaian economy.
