Three workers of the Juaben Oil Mills Limited in the Ashanti Region, have been confirmed dead.
Authorities say Tuesday's incident occurred following what they say is "a mechanical failure" in one of the facility’s boilers.
The Supply Chain Manager, Nana Yaw Serebour, said, "This resulted in the steam coming out to engulf people who were working beneath."
In total, six employees were involved in the accident.
He told JoyNews that three others who were injured have been treated and discharged.
While the specific cause is unclear, Mr Yaw Serebour explained that "for the past 40 years that the company has been in operation, nothing of this nature has ever happened."
However, the company says it will investigate the circumstances surrounding the incident to ensure that it does not occur in the future.
"We're undergoing investigations through the various statutory bodies, to ascertain what exactly happened," he added.
The Juaben Oil Mills has since suspended operations.
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