Electrochem redistributes 1000-acre concession to local salt miners

Electrochem Ghana Limited, a Ghanaian salt mining company operating on the Ada Songhor Lagoon, has begun to redistribute 1,000 acres of its concession to indigenes through its outgrower scheme.

Launched in August this year and supervised by the Minerals Commission, the scheme allows registered local miners to construct salt pans and mine on designated portions of the concession, with a guaranteed purchase of their output by the company.

The scheme was established based on the recommendations of a joint parliamentary select committee on Mines and Energy, and Lands and Forestry, aiming to improve livelihoods and foster positive relations between the company and the local community.

Beneficiaries of the scheme include community chiefs, youth groups, cooperatives, and other indigenous businesses.

In an interview, Mr. Abdul Razak Adam, the Chief Executive Officer (CEO) of the company, said Electrochem was committed to making the local community better and honouring its financial obligation to the state.

He explained that out of the 41,000-acres concession, the company was operating on 7,000 acres, out of which 2,000 acres had been seeded for the community pan and outgrower projects.

“In reality, a larger portion of the concession is inhabited by mangroves, water bodies, settlements, churches, shrines and other places the company does not intend to mine,” he said.

Under the community pan project, the company has also constructed pans on 1000 acres of its concession and supplied the local miners with brine for salt production.

Mr. Adam also noted that the company had for the past two years paid about GH₵36 million as royalties to the minerals commission, paid land occupation rights to the Traditional Council and other fees to the District Assembly.

During a tour of some allotted concession, Nene Dameh Sewu III, Chief of Togbloku Okor and Secretary to the Ada Community Chiefs Association said in an interview that the initiative would go a long way to improve livelihoods of chiefs and help the traditional rulers financially support their subjects.

“It will also create jobs for people we will hire to do the work for us as chiefs,” he said.

He expressed gratitude to the media for getting the public to pay attention to the plight of the community.

Parliament on November 6, 2020, ratified mining lease agreements for Electrochem to mine salt on the Ada Songhor Lagoon for a 15-year period.

So far, the company is reported to have invested about $88 million in revamping the salt mine.