Electrochem’s outgrower scheme to generate $200 million annually

Abdul Razak Adam, Chief Executive Officer of Electrochem Ghana, says the outgrower scheme launched by his outfit for local miners within Ada and its environs would generate $200million every year.

Mr. Adam disclosed this to the Ghana News Agency (GNA) in a phone interview.

The outgrower scheme is a small scale salt mining project launched on August 26 this year.

Local miners would receive concessions from Electrochem Ghana to mine salt with guaranteed purchase by the company.

The launch of the Scheme followed a recommendation by a joint parliamentary committee to resolve the long-standing dispute between the company and the community.

But speaking to the GNA, Mr. Adam said the project should not be viewed only as a ‘peace offering’ but rather a major economic activity that would change the fortunes of the indigenes of Ada.

He said a total of 500,000 metric tones of salt could be produced from the 200,000 acres of land allocated for the project which would generate $100m every six months.

“When it is done efficiently, they would be able to produce 500,000 metric tonnes of salt every half a year.

“One metric tones amount to $200 so if they produce 500, 000 metric tonnes, it means they will make 100,000,000 every six months,” he said.

Aside the financial gains, Mr. Adam also noted that the Ada community alone would be able to cater for Ghana’s salt needs since the country’s yearly consumption of salt has been pegged at 600,000 metric tones.

Additionally, Mr. Adam said the project would also help promote responsible mining and environmental sustainability.

He indicated that before Electrochem took over salt production in the community, portions of the Ada lagoon and ramsar sites were lost to illegal salt mining activities.

He said the company had since made it a responsibility to introduce the indigenes to sustainable ways of mining salt.

“So this project would also help promote responsible mining and environmental sustainability. The lagoon and ramsar sites would not be destroyed,” he said.

The GNA spoke to some groups and associations who have already applied to benefit from the project.

Nene Dameh Sewu III, Chief of Togbloku Okor and Executive Secretary of Ada Community Chiefs Association said the 50 chiefs who makes up the association support the project, a game changer for indigenes of Ada.

He said the chiefs would ensure that their people go by the laid down regulations, regarding the project so that they could benefit immensely from it.

Mr. Lord Freeman Aleley, Secretary, Terkperbiawe Youth Association, said the project would bring great financial benefits to the community and advised the youths of the land to take advantage of it.

Mr. Aleley said the involvement of Electrochem in the salt production business had put value on salt and made it a dream venture.

“I have realised that with the coming of Electrochem, the pricing on salt is very high, and if you go into it you will make a lot of money unlike the previous times when it was an open land and anybody could go and mine; there was no value on it .

“It is a very good thing that is going to help everybody in the area so I entreat everybody, especially the youth to go into it,” he said.

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