Electrochem Ghana Salt Mine: An Economic Game Changer For Ghana

The capital injection of $88 million by Electrochem Ghana ltd into the construction of an ultra-modern salt mine with a salt washing plant and other ancillary state of the art infrastructure has been described as the much awaited investment needed for the game changing economic transformation of the Ada traditional area and Ghana as a whole.

The investment has breathed a new breathe into the Songor enclave and given a new facelift to the area which has been abandoned for several decades.

Following the massive investment, some interest groups have emerged forcefully against the project and have mounted several attacks on workers of Electrochem Ghana claiming that the project has taken way the source of livelihood for the people.

One of such attacks which happened on November 6, 2023 drew the attention of Parliament after a statement was made on the floor by Member of Parliament for Sege, Christian Corletey Otuteye.

Speaker’s Directive

The Speaker of Parliament directed the Mines and Energy committee of the House to visit the production site of Electrochem to ascertain the veracity or otherwise of the claims by opponenets of the company and its operations.

The First Deputy Speaker, Joseph Osei-Owusu tasked the committee to investigate the leasehold agreement and the subsequent parliamentary approval that authorized Electrochem Ghana to embark on salt mining exercise on the 41,000 acre concession for a fifteen year period and make recommendations to plenary for consideration in a quest to bring lasting solution to the impasse.

Visit By the Committee

The select committee on Mines and Energy led by its chairman, Samuel Atta Akyea and Ranking member, John Abdulai Jinapor visited the project site of Electrochem Ghana last Friday November 17, 2023 and interacted with management of the company.

Management of Electrochem briefed the select committee on its operations including the integration of the communities into its activities and the several corporate social responsibility initiatives it is embarking on for the people.

Members of the committee were also conducted round the project catchment areas which showcased the huge investment made on the concession by Electrochem Ghana.

Chairman’s Remark

Addressing the media after the engagement with management and tour of the project site, chairman of the committee, Samuel Atta Akyea expressed amazement at the level of investment into the project which he noted has huge prospects for the economic fortunes of Ada and the country at large if supported by all.

“…For the moment I’m very amazed that here is another undertaking that if given our full support would even rival what we are getting from gold and cocoa. We might not even have to go to the IMF seeking a bailout if we pay attention to the natural resource, salt.

‘What amazes me is that so far they haven’t even done 40% of the capacity of this setup…They’ve sunk about $88 million into the undertaking. They also intend to do some massive export drive that will also rake in some foreign exchange for Ghana” Mr Atta Akyea stated.

Mr Atta Aakyea also assured the management of Electrochem Ghana Limited of parliament’s full support and cautioned the alleged enemies of progress to repent from attacking the project.

“I’m using this opportunity to send a note of caution to those who believe that the economic conditions of the people of Ada should not improve when you have a committed investor seeking to improve the livelihoods of the people.

“When they have created a space for the community people to mine salt and further provided a ready market and somebody sitting somewhere thinks he can undermine this undertaking, that is lawlessness and I assure them that the law will take its due process and deal with such characters,” Mr. Atta Akyea warned.

Mr Atta Akyea who is MP for Abuakwa South said, the committee had a fruitful engagement with Electrochem Ghana Limited and has learned about all the challenges it is facing.

Ranking Member’s remark

The Ranking Member on the Mines and Energy Committee, John Abdulai Jinapor on his part described the salt mining project as a very huge project that has the potential of positively impacting the economic fortunes of residents in Ada.

“It is obvious that this is a very very huge project and has the potential of impacting positively on the economic fortunes and activities of the people of Ada and the community.

“So right from here when we go back to Parliament, I’m sure that we will report back to the Speaker and the House in general,” he said.

According to him, parliament will ensure that businesses thrive in a peaceful environment therefore the need to engage all stakeholders.

“So it is necessary to engage all the stakeholders to ensure a more peaceful business environment.”

“We interacted with the staff, we interacted with the management of Electrochem Ghana Limited and its group Chairman McDan. They told us some of their challenges and what they expect the state to do to help them” Mr Jinapor stated.

Management of Electrochem Ghana expressed optimism that the intervention of parliament through the visit of the select committee will ensure address every challenge to ensure a congenial environment for smooth operations.

The Electrochem Ghana Project

President Nana Addo Dankwa Akufo-Addo August 30, 2023 commissioned the Electrochem Ghana Limited Salt Mine and Processing Plant located at the Ada Songor enclave in the Ada West District of the Greater Accra region.

The company, a subsidiary of the McDan Group of Companies has become the largest salt mine in West Africa.

Electrochem acquired a leasehold agreement of 41, 000 acres concession and parliamentary approval to mine salt in commercial quantities for a period of fifteen-years.

Official operation of the company stated in November 2020 with an ambitious target of producing one million (1,000,000) metric tons of salt per annum for both local and international markets.

By: Christian Kpesese/www.eagleghana.com