Electrochem Ghana Limited, a prominent salt mining company, is actively operating in the Ada Songhor Lagoon area, focusing on environmental and community sustainability. In August of this year, the company initiated a groundbreaking outgrower scheme aimed at redistributing 1,000 acres of its concession land to local indigenes. This initiative, supervised by the Minerals Commission, allows registered local miners to establish salt pans within designated portions of the concession. They are guaranteed a purchase agreement for their mined output, providing them with a reliable income source. This scheme aligns with the recommendations made by a joint parliamentary select committee on Mines and Energy and Lands and Forestry, which aims to enhance the livelihoods of local communities while fostering a collaborative relationship between Electrochem and the surrounding population.
The beneficiaries of the outgrower scheme include a diverse range of stakeholders such as community chiefs, youth groups, cooperatives, and other indigenous businesses. By engaging these groups, Electrochem hopes to create a beneficial partnership that not only supports local economic development but also empowers communities by providing them with resources and opportunities. Mr. Abdul Razak Adam, the Chief Executive Officer (CEO) of Electrochem, emphasized the company’s commitment to community enhancement and its adherence to financial responsibilities toward the state. With a concession spanning 41,000 acres, the company is actively utilizing only 7,000 acres at present, with a focus on ensuring sustainability and minimizing environmental disruption.
Out of the 7,000 acres in operation, 2,000 acres have been specifically designated for community projects, including the construction of salt pans within the community pan initiative. As a part of this initiative, Electrochem has also constructed additional salt pans over 1,000 acres within its concession and provides brine to local miners for salt production. This strategy not only bolsters the local economy but also educates and enables local miners by supplying essential resources for salt extraction.
Over the past two years, Electrochem has demonstrated its dedication to the local economy through significant financial contributions, reportedly paying approximately GH₵36 million in royalties to the Minerals Commission. In addition to royalties, the company has also compensated the Traditional Council for land occupation rights and has settled various fees owed to the local District Assembly. Such financial commitments illustrate the company’s desire to maintain a positive financial relationship with local authorities while ensuring that economic benefits are shared with the community.
The outgrower scheme has been met with enthusiasm from local leaders, including Nene Dameh Sewu III, the Chief of Togbloku Okor and Secretary to the Ada Community Chiefs Association. He remarked that the initiative is poised to significantly improve the livelihoods of chiefs as it will enable them to offer financial support to their communities, as well as create job opportunities for community members through the work generated by the scheme. The local community is encouraged not only to embrace these initiatives but also to engage actively in the opportunities presented by the outgrower scheme.
Electrochem’s mining lease for the Ada Songhor Lagoon, ratified by Parliament on November 6, 2020, allows the company to mine salt for a period of 15 years. The company’s ongoing investment in revitalizing the salt mines, reported to be around $88 million, underscores its long-term commitment to both environmental sustainability and community welfare. The combined efforts of local stakeholders and Electrochem reflect a collaborative approach toward resource management, economic development, and social responsibility, establishing a model for other mining operations in similar regions.
